$2,093,910!
That is a LOVELY $133,849 gain on paried LTP/STP Portfolios since our Aug 20th review. I said at the time that it is ridiculous to make this kind of money in a month (6.8%) but I also said we'd be fools not to take advantage of the gift the market is handing to us. The STP, where we keep our hedges, lost $6,813 as of our review date (these reviews are from last week) but that was lucky and now we're down to $460,302 but, on the other hand, the LTP is clocking in at $1,654,569 so $2,114,871 is up another $20,961 since last week - that's crazy!
As I have been emphasizing all week, we are putting 25-33% of our long profits into our short hedges - in order to lock in those long gains. When you are netting 6.8% even after the hedging that insures you will keep that 6.8% (or most of it) when the market turns sour, then you can certainly afford to be cautious. At the end of the year, we'll be up 60-70% whether the market is up or down while, if you let it all hang out and went for 85% - maybe you'll have it at the end of the year and maybe you won't - I'd much rather be sure.
Anyway, read my notes from the last report - no changes - we're cautious for the same reason but pay particular attention to the kinds of adjustments we made and how they worked out. That's another HUGE benefit of keeping our portfolio well-balanced - the stability gives us lots of time to tinker with and perfect our positions as it's very easy to make a few minor adjustments, when you don't have to worry about having to make a major one...
