Not a good month!
Fortunately, our portfolios held their ground and that's because we use options to MITIGATE our risks - not to exacerbate them. Our entire "Be the House - NOT the Gambler" strategy is built on selling risk to others who think they know what the market is going to do. Simply by stepping to the other side of the table, we are able to make money in a flat or up market AND lose less in a down market - that's a long-term, winning combination!
The S&P was at 4,522 last month and that was up 184 points (4.2%) from our June review. This morning we're losing yesterday's gains as China cut rates (making the Dollar stronger) and put in just $28Bn of stimulus, which doesn't do much more than $28Bn would do in the US markets.
This morning the S&P is back to 4,469 - so that's down 53 points for the month and this is only month 3 for our new batch of Model Portfolios but keep in mind that any position can be a new position at any time - you just have to understand whether or not the remaining upside potential is worthwhile to add to your own portfolio.
As I said last month, we have most of our CASH!!! still on the sidelines and we are hoping (not a valid investing strategy) for a bit of a correction before jumping in with more bets. Still, while we wait, we've found a few new trades each week - so we're not resting on our laurels...
Money Talk Portfolio Review: I was just on the show on July 26th and we cashed out JPM and LOGI and added SPWR and LOVE. It's been all downhill for the market since then but we were at $403,344 (up 303.3%) on July 26th and today we're at 403,459 (up 303.5%) - so I'd have to say this is a pretty good bunch of positions to hold up so well and that's good - because we only make adjustments when I'm on the show (roughly once per quarter).
