Tuesday, September 22, 2009
SoS: Stopped out of everything.
Crappy return, of course - a negative 10% in just about a year. Not surprising for a short strategy; and I'm sure if I had real money on it things would be different. It's very strange, actually, to have no real money backing this strategy; I'm sure if I did I would manage it better (and who wants to lose this much!)
When we planned Moneyoga I remember hearing that this "virtual" portfolio stuff is only a learning exercise - the real test is the emotional damage the volatility of real money can do. Which is true, I guess - I've been strangely unattached to the losses of a "virtual" strategy, and been on the wrong side of most of the move!
There will be a time to return, and given we are currently way overpriced, the only thing I'll do is setup Nifty puts on it. A better way to short perhaps is to find stocks that have very short term underperformance and take small bets on those - in a bull rally it's tough to hold shorts on a fast moving stock. HDFC is still way overvalued, but to short it weakness must build; and there is absolutely no sign of weakness.
The blowout will come, but when, from which level? That's not a question worth answering - the Taleb bet might be the only useful one, when you spend small amounts buying what will give you an outsized return in one of the following months.
Labels: ShortOnly
4 Comments:
Better to not look for very long term .. A short term fling with some stocks would be as tasty as in real life .
In one of the talks in Bangalore ,I happened to hear Uma Shashikant , where she mentioned HDFC as an excellent long term bet , ofcourse "with disclaimer" ..
I beleive HDFC would be a good stock to hold :0 .
Manish
http://www.jagoinvestor.com
I respect ur analysis and pointing the minute details you bring upfront for reading. Please take it as constructive criticism and continue to enlighten us with ur analysis.
Nimish: be careful. Lot of people are strutting around talking about it. The stocks always had good earnings, but never a high p/e, and you might want to be careful!
Indian: thanks mate. There will be more as time flies...
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