Catchy title eh! I’ve lost count myself of how many articles I’ve read with the above title, and of course believe them for a while, only to find that soon after, things don’t turn out as rosy. But anyway, to go back to my title, and my current trade, I last told you about the mega-position I have taken with BHP, entering at 36.18,,, a few weeks ago and I was saying I am going to make my regular income with covered call strategy. Now, you must know that with covered call options, if the price of the stock moves against you, you are saying goodbye to more profits. And who wants that? So you got to trade off a “sure win” with potentially “gigantic win”. Now, BHP is at this point, it had gone up as $38.27 and guess what, I have, made several attempts to “demo” a covered call strategy but got out quickly, yeah, so quick I didn’t have time to tell you all about it! Life is like that, you have to take your chances at the best time possible. That happened last week, what I have been finding with BHP is that since it is a widely-held stock, once that it had dipped there are other buyers snapping it up. It had only fallen very small points over the “the triple digit” fall we had last week at the DOW due to tapering fears by the US Fed. But, like what I said in my title, there are “the best times to invest”, and it appears, it is now. You see, the next day, the good news that was being “feared” to add to the tapering scenario produced a stellar comeback from the US market.
Anyway, in the years that I’ve observed in the market, there is a trend upwards toward the end of the year. You may want to call it the “Santa Claus” rally (a bit early, but hey this morning I heard on the radio that it is only 44 days to Christmas!). And there is now way, the government, yes, the US Fed, (scheduled to hold another policy meeting around Dec 18) is going to act like the Grinch and ruin Christmas for investors.
OK, so that’s one “best time to invest”.
The second is, take a guess, right after Christmas season, when January rolls in.
Of course there will be the ebb and flow of the markets, there is going to be some volatility but not expecting a wild ride / sideways market. This is because January is when people’s “New Year’s Resolutions” are the strongest (haha surprised?), when there is a tendency to buy. From a more market-oriented view, this is another “new quarter” and “annual” reporting season and there is anticipation rally more often than not in the many stocks I have observed.
So shall we move on to February as one of the best times to invest? Well maybe, it all depends, on whether your company stock gives out their annual reports and dividend announcements at this time, at which case, investors are holding on to their stock to receive their dividends pushing up the price.
OK so that’s three. But don’t wait for me to tell you more. I did say, one of the best times is now!
So go ahead and study what you will have to invest on.