Saturday, November 17, 2012

YTD_down

Yes, I took a lot of cash from my portfolio this year to live. But it still bugs me that I am down year to date. I like to end each year with my principal intact. It is only mid November, there are still about six weeks left for the market to rally. I'm hopeful.

But, this weekend my portfolio value is down almost a full percent from its January opening. The markets have not been kind to me since the American election. Is there a direct correlation between Obama's re-election and the falling market? I doubt it.

There are a lot of things going awry in the world and it may just seem like a good moment for some profit taking. I know I seriously considered going to cash a few weeks before this recent pullback. I was pushing my all time high and anytime I break that barrier I expect a pullback.

I figure the first time I unload on reaching my personal best, that will be the time the market goes on a wild bull run. I guess I'll just quietly lick my financial wounds, buy a few bargains and wait for the inevitable rebound.

My dividends are accumulating and come January or February I should be able to withdraw enough money to get me through four or five months. And at that time there will be more dividends to remove.

I have already calculated a drop in dividend income starting in 2013. For one thing, I own Penn West and I have a bad feeling about that generous payout. If it is cut, it will come as no surprise.

My portfolio may be down but my spreadsheet tells me my bills will still be paid and that all that is important is right in my financial world.

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