Not exact matches
In hindsight, the
stock market has followed this typical post-war pattern, and we clearly could have
captured some portion of the market's
gains over the past year had I ignored the risk of a second wave of credit strains (which I remain concerned about, primarily over the coming months).
It will not maximize
gains in rising
stock markets, but it can
capture a substantial portion of the
gains over the longer term, with less volatility than just investing
in stocks.
I will use my cash fund that I have accumulated
in the last few months (via
capturing gains) into mainly US
stocks and pick them up at cheaper valuations.
This means they are constantly buying and selling
stocks to attempt to time the market and
capture gains, studies suggest that they fail at this miserably over time and lose more than just keeping the funds
in a passive account which is periodically re balanced.
After you've had a nice run
in a
stock it is prudent to either (1) sell a portion of the
stock, or (2) write some calls against it so that if it gives back some of its recent
gain you can
capture some profit from the call premium.
As you can see
in the table below, a diversified portfolio lost less than an all -
stock portfolio
in the downturn, and while it trailed
in the subsequent recovery, it easily outpaced cash and
captured much of the market's
gains.
This is the period where international
stocks offered some diversification benefits — falling by a smaller amount
in US bear markets, but
capturing a majority of the
gains of the US market when it rose.
In my role as a financial writer and editor, I specializes in unique, overlooked investment strategies, growth with income stocks, imaginative investment themes, tax - advantaged themes, risk management, technologies to capture gains and reduce losses, real estate related opportunities, effective wealth preservation techniques, and the use of ETFs for diversification and asset allocatio
In my role as a financial writer and editor, I specializes
in unique, overlooked investment strategies, growth with income stocks, imaginative investment themes, tax - advantaged themes, risk management, technologies to capture gains and reduce losses, real estate related opportunities, effective wealth preservation techniques, and the use of ETFs for diversification and asset allocatio
in unique, overlooked investment strategies, growth with income
stocks, imaginative investment themes, tax - advantaged themes, risk management, technologies to
capture gains and reduce losses, real estate related opportunities, effective wealth preservation techniques, and the use of ETFs for diversification and asset allocation.
covered call writers who go farther out
in time & higher
in strike price, who incorporate other modalities such as pairs or trios of options including puts, who continuously roll over & adjust their positions, will be continually
capturing 100 % new money from outside speculators, while almost never surrendering any
gains that accrue
in the underlying
stock.