My Minor Little Coup

I haven't talked about my investments in a long time, and there is a very good reason. Like most of the people who had money in "The Market", the last few years were a disaster, but I think I've rounded that corner, beginning my long, slow climb back up.

A few months ago, when it became clear to me that the politicians were starting to play a serious game of "I've Got Bigger Balls Than You" (aka "Chicken") with the United States' AAA credit rating, I slowly started selling off the bulk of my investments and got into a 100% cash position. Then I began to slowly take small bites out of the investment pie for lack of a better term. In a phrase, I did my research.

I wanted more diversification than I could get at the moment by buying my own stocks, I wanted to keep the expenses down, and I wanted the ability to get into and out of a position quickly if I had to. That meant ETFs, or Exchange Traded Funds.

Keeping my eyes and ears open (Thank you CNBC TV and 740 AM radio), I started taking $100 bites out of 4 different stock ETFs and one bond ETF that concentrates on TIPS (Treasury Inflation Protected Securities).

Since I had built up my cash position to 100% of my portfolio, every time the market took a dive, I would set a limit order to buy a small number of shares in the 5 ETFs I chose, and then, after I bought, I set new limit orders to buy into each fund again when the price fell 1% or more below the previous price. This is called "Dollar Cost Averaging". That and keeping calm has served me well so far.

My total gains for the year, 16.4%.

I wonder if anyone would be interested in starting an investment club.