Apparently that happened this week and dominated the news on one particular site – quite why its news and who really cares is beyond me. The whole concept of the show ie having so little to do in your own life, that spending hours watching a group of people in lock down, doing very little, if anything of value is interesting and fun to you. I say this tongue in cheek as a friend of mine was the producer of the show, for a few series’ some years back.
Still at least this provided a slightly more mind numbing distraction from the Election coverage. As we get to the pointy end of the campaign and outcome, as both voters and investors, we are faced with a choice.
As an Investor
One option, as an investor, is we can choose to sit it out, wait for the verdict and then decide. The problem with this is that you can expect a bounce in the market (assuming Syria doesn’t kick off, in which case you should be looking at our metals trading room, for positions in Gold and Silver) and then you are having to jump on a moving train – maybe too late, perhaps you should wait for the pull back which could be weeks away and a few hundred points of missed opportunity.
Post Election Rally
My thoughts would be on a post election rally (based on a Liberal win) and a major lift in business and consumer confidence, adding some much needed fuel to the economy. You may wish to refer back to my article a few weeks ago, re breakfast with Tony Abbott.
I heard once, from a learned colleague of mine (he’s been in the game since the early 1960s) that better to be in the market and decisions to make, positions to manage ie you can do something affirmative, rather than passively watching and waiting and not getting in before wondering where the opportunity went.
Locking in Profits
Meantime, while many have been sat on the sidelines waiting for everything to line up (as if that ever really happens) we will be locking in profits for all of our clients who took up the Leighton Holdings (ASX:LEI) trade we put out on 20th August 2013.
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4.3% for 16 days
Markets only reward action takers. Targeting the fact that the stock (Leighton Holdings) is paying a dividend, and the extra premium in the option, we will be exercised early, in all likelihood this week, for a profit of 70c per share (gross) or 4.3% for 16 days or so in the position. Not bad and without breaking into a sweat, or joining the “housemates” and breaking into tears.
Make your choice
As for the other choice, make sure you make yours on Saturday – Election Day – there are people all over the world without a voice or democracy – Syria for example – that would give anything to have the opportunities that we have yet all too often take for granted. As I am in Los Angeles today, I made mine earlier in the week – lets see who’s crying in the big house on Sunday!