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Subject:  Re: my mid year review of Economy and Markets Date:  6/30/2012  1:53 PM
Author:  pauleckler Number:  10537 of 10591

Thanks for your comments, tktrimbath.

The strength of the US economy is certainly good news, but the worry is that the numbers we have are backward looking. The slow down in Europe and all those state layoffs have to bite into current sales. Already companies are revising their earnings expectations downward.

Earnings season starts with Alcoa in only a few weeks. We shall soon see how bad the numbers will be.

I looked over your CAPs portfolio. You seem to be a long term investor. That is usually a good idea for small investors, but holding your losers on CAPs hurts your score. If you have faith they will recover, you are best off to sell and then rebuy to get positive score as the recovery occurs.

Holding losers on CAPs is a losing strategy. And with $8 commissions, why hold them in real life. Avoid the wash sale rule, but otherwise dump them and take the tax writeoff.
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