Keep the faith

[mrmarket]

Some of you may be wondering why $$$MR. MARKET$$$ has not purchased any stocks recently. Well, every time I run my screens it looks like the scene from Forrest Gump when he first learns how to catch shrimp and empties his nets. The good news is things are starting to look up.

If you are wondering why I am still holding my existing positions, the answer is simple. The average PE of the S&P 500 is 23. The average PE of 8 of my 10 holdings is only 15. That means that 8 of the stocks I own are undervalued by 35%. The companies are still making money so I expect them to outperform the market going forward.

The other two stocks (QLYS and LXFT) I like the products quite a bit..so I'm not giving up on their future earnings potential.

Hope this helps. I'll be back!

[Louetta]

There's KMI too. That's done pretty nicely tho not officially added to the MM portfolio.

[billyjoe]

I've been doing great with "mean reversion" trading the last 8 weeks. Only stocks above their 200 day average. Trading several times nearly every day. Holding time usually less than a week. Gains in the .5% to 4% range, but they ad up.

---------------billy

[Fateup]

As Ed Seykota said: “Speculate with less than 10% of your liquid net worth. Risk less than 1% of your speculative account on a trade. This tends to keep the fluctuations in the trading account small, relative to net worth. Perhaps, what benefits us here is risk control.

[Louetta]

Inoperative