Monday, January 23, 2012

Updating The Alpha-D For 01/23/12

I did have to make some minor portfolio changes today.  My FXI stake rose through the strike price of the covered calls I wrote last month.  I bought some of it back in a wash sale and some will be a realized gain.  Actually, come to think of it, some of what I allowed to sell away may in fact be a realized loss if my brokerage calculates the entry point for those positions at a fairly recent date, indicating I paid a higher price for them.  That's the way it goes sometimes, and I trust my brokerage's records methodology.

I allowed my China position to get smaller to reduce my exposure to what may very well be a hard landing.  Check out my posts for the past few months that chronicle my increasing skepticism about China's ability to keep its growth engine stoked.

I also renewed my covered calls on GDX, which expired unexercised.  Gold is important to me as a hard asset that has the potential to be an alternate store of value in the event the U.S. dollar loses its world reserve status.

Those are the only actions I've taken this month.  I keep looking at a few stocks in defense, railroads, and shipping to see if they're worth buying.  I'm not ready yet to go long.  Bring on the European implosion first so a major market decline will give me the entry points I need to generate good long-term returns.