Normally, I don’t talk about sex in this blog, (it’s not my specialty), but today I have a point to make about safety in investing so, yes, why not, I’ll say I’m “inspired by safe sex” writing this post. 2 things happened today that prompted me to remind everyone about making sure to pay attention to strategies to keep safe.
1. The markets fell – I was actually looking at it and decided the market is quiet (points move is very small), so went to the bedroom, dressed up my daughter and came back to close the screen when it dropped like 50 points in 10 minutes. That’s enough to induce people into panic. But I do happen to have shares with which I have “covered call” so I’m feeling protected. (And a little bit pleased!)
Found that the Federal Reserve had spoken today and came up with mildly positive outlook on the U.S. economy and did not make any commitment to “stimulus” measures. Yes even with Eurozone debt issues and high jobless rate. Duh! So, I’m thinking there is more of this volatility for some time. I suggest you get reading to apply “band trading” concept and strategies like covered call options that could protect and let you profit from volatility in this kind of market.
2. We got letter about a lawsuit being initiated. This has nothing to do with shares, but about a property investment so I thought I’d tell you. We have a townhouse in Christchurch, New Zealand which suffered series of earthquakes late last year to early this year. Bottomline is, the development is a total loss. We are covered with “earthquake insurance” by Earthquake Commission plus building insurance, but it is underinsured for the replacement value. Now as owners we have recourse to seek compensation to the “body corporate managers” – the managers of the townhouse complex, since there is a law called Unit Titles Act of 1972 that requires appropriate insurance. The good thing too is that such “managers” have business insurance like “professional indemnity insurance”, business insurance to protect themselves from negligence etc. and still conduct business despite difficulties.
Get protected and stay in business.
Even stay alive.
Good idea right?
