My last blog post was about a dream I had in which three big 747s that had been flying in formation looked as if they deliberately flew into the ground and crashed with a huge explosion, while I made my way to shelter and safety. I think my dream has and is coming true, even as I right this.
All three financial indexes, the DOW, the NASDAQ, and the S & P 500, have fallen (IE crashed) by 2.8%, 2.74%, and 2.47% respectively as I write this, and while all my investments are down for the day, overall my portfolio is looking pretty good considering, which is mainly due to an investment I made in Alcoa (AA) back in April, 2009.
During a bit of "market turbulence" on April 8th, I purchased 125 shares of Alcoa for a net price of $998.95. Less than one month later, on May 4th, I sold 100 of those shares for $1,006.05. Now, a profit of $7.10 may not seem like a lot to get excited about, but remember, I sold 100 shares out of 125 shares, keeping 25 shares worth $200.54 that in essence I got for FREE.
This is something I call "Principal Taking", as opposed to "Profit Taking", and so far my free profits are up nearly 40%!
All of the stocks I currently have my money invested in are consumer staples like McDonald's, Heinz, Pepsi, and Unilever or utility stocks like ConEd and Dominion Resources. These are my safety and shelter from the crashing planes.
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