The past month has found me with little time to write. Unfortunately (fortunately?) there are only 24 hours in the day. I’ve been involved in learning and trying to integrate strategic options trading into my portfolio. It’s been a month of seven day work weeks that on some days seemed to be endless.
There is one thing that never changes in this business. The business is constantly changing. Technology drives it forward. Markets change. They get more and more efficient and liquid.
I made several portfolio changes yesterday. Friday’s bond move really scared me and was the only signal I needed to liquidate the majority of my leveraged mortgage REITs. During the market bloodbath of 2008 and early 2009, I had purchased a significant amount of bank preferreds at a substantial discount to par. All but one ($RBS) never missed a dividend payment and they all appreciated from 2 to 5 times. When the $RBS stopped paying dividends, I rolled the proceeds from the shares, which had tripled in price, into a couple of leveraged mortgage REITS. Two years of outsized dividends and healthy price appreciation are quite enough.
Time to get back to work.