Damn, what a bloodbath

[pianodoctor]

While my port is <10% (high dividend paying foreign) stocks and >30% gold, the negative stock market today completely overwhelmed the positive gold movement. I've got stocks suddenly down another 23%, 27%, etc.

These stocks, all originally Peter Schiff picks, are down avg 50-75% since bought in 2007. One of them is down 100%. Doubleplusungood!

[cjppjc]

Re: Damn, what a bloodbath

I am sure Metalman can provide some useful advise right about now.

[jk]

Re: Damn, what a bloodbath

my impression is that peter schiff is an interesting theorist, but a shark towards his clients. you need to look at your portfolio on a zero-based budgeting basis. if you were all in cash, where would you want to put it? if you wouldn't buy an asset today, why are you still holding it? otoh, if you WOULD buy that asset today, hold on.

[pianodoctor]

Re: Damn, what a bloodbath

JK, As I mentioned I am less than 10% stocks, which I held onto because of the high dividends of these stocks (which are now probably double digits). As you say, I thought they were still worthwhile owning based on dividends alone. Then I am a little over 30% gold, and the remainder cash. This is probably about as close to an iTulip ideal I am likely to get. Really I was just amazed how beat up these already-beaten-up stocks have gotten in the current plunge. And that reminded me how pissed off I am at how cocksure Schiff was about how this type of stock would do so well in a collapse...... you know, with the "decoupling" and all that. How all the economies EXCEPT the U.S. would do OK.....

[jk]

Re: Damn, what a bloodbath

JK, As I mentioned I am less than 10% stocks, which I held onto because of the high dividends of these stocks (which are now probably double digits). As you say, I thought they were still worthwhile owning based on dividends alone. Then I am a little over 30% gold, and the remainder cash. This is probably about as close to an iTulip ideal I am likely to get. Really I was just amazed how beat up these already-beaten-up stocks have gotten in the current plunge. And that reminded me how pissed off I am at how cocksure Schiff was about how this type of stock would do so well in a collapse...... you know, with the "decoupling" and all that. How all the economies EXCEPT the U.S. would do OK.....

sounds like it would be reasonable to keep holding those stocks.

in a general liquidation everything gets sold. that's why gold went down too- margin calls and a panicky dash for liquidity, and everything gets sold, the good with the bad. that gives you an opportunity to pick up some of the good at a discount, if you can just figure out which is which. it is also testimony to the importance of knowing why you own what you own, so you won't be shaken out for the wrong reasons.

[don]

Re: Damn, what a bloodbath

Doubleplusungood!

+2

[pianodoctor]

Re: Damn, what a bloodbath

Holy carp, another -11% and -16% move on the stocks that went -23% & -27% last week. The gold holdings overwhelm to the upside fortunately.

[jpatter666]

Re: Damn, what a bloodbath

Yeah, I've taken some hits as well, but most of my stocks are long-term holds with serious moats bought pretty low. The vast majority pay dividends which at least gives me something through the carnage.

The problem is really what do you put your money into. I don't like being all gold and treasuries seem a losing proposition to me -- nothing interest in a depreciating dollar asset (thanks Finster for the lesson)

Of interest today to me is that gold miners which often go down in a crash are moving *up*. I know iTulip doesn't like the miners but I find well chosen ones worthwhile (my version of a leveraged play on gold)

[pianodoctor]

Re: Damn, what a bloodbath

I'm in mostly cash and while that might be a "real terms" loser in the nearer timeframe, I just can't help but think there are going to be opportunities ahead where I am going to be very happy I had the reserves ready. Meanwhile, patience and thankfulness the gold hedge is working.

[flintlock]

Re: Damn, what a bloodbath

Schiff picks, pretty funny. One of his minions both called and emailed today. I should email a link to this thread. I like Schiff but I agree about the shark comment. Another great benefit of visiting Itulip.com.