Archive for the ‘Asset Change’ Category

For the first time since the huge rally began in March, we were faced yesterday with a decision that was painful. We like alternative energy. No, we love alternative energy! If our economy is to rebound and grow, it will be a driver of growth. But, this pullback has revealed considerable weakness in the sector. Yesterday, one of our alternative energy positions hit the price that triggers a sell for us. We had to face the choice, process or emotion. Of course, we stuck with our process and sold the position. We hope to own it again in the future and to see it grow and produce considerable profits for our clients. For now, however, it had slipped in price and momentum to where we needed to sell the position before it damaged portfolio values any further. The trigger (a loss beyond the normal range of pullbacks and advances) has told us that now is not the time, based on risk and reward, to hold this position. We will see you again down the road, friend!