Monday, March 13, 2006

Current Allocations and Changes

Primer on my investment outlook

I've added a small position in CCI (Chrome Corp) - CCIG 10% FV 0.025 @ a price of 0.024. Its a microcap with operations in a chrome mine in South Africa. While international price do affect South African prices, its market is a bit insulated and the mine is already operational. I am clearing out of my SHN positions slowly. Nothing scientific, :-) I am trying to take advantage of Long Term Capital Gains and selling after my holding date is > 1 yr. SHN is speculative, and while i can hold an interest bearing speculative position, I dont want non-interest bearing positions.
SGL is coming up for redemption in April and June, and i will use that to shore up on my cash positions..

Tuesday, March 07, 2006

A titanic shift in liquidity

Primer on my investment outlook

For my regular readers, you are well aware that I believe asset prices have gone up due to an explosion of liquidity recently. Nearly every major central bank has given money away a real interest rate that is negative or zero. Cheap money has been the tide that lifted all boats..
Thus, we have had a situation where EVERY asset class, bonds, stocks, commodities has gone up for nearly 3 years..
The tide has turned, as Mauldin describes well.
I'm looking for a final leg up to dispose of my positions. I have ended up with too many non-yield shares due to convertible note conversions.. And SGL is going to be redeemed in a few months..
In a few months I intend to be left with only CBH conv notes.. And maybe a re-investment in some other newer issuer at more compelling prices..