Care Bear Stare

Might be getting a bit bearish on SPY

We started off talking about saving. One of our members suggests a $100 a month maintenance saving scheme to take care of anything that comes along. While, you won't spend nearly that a month, or even most years, that will cover that new roof you'll need, plumbing nightmares, conditioning of the air, etc. Even if you don't set aside this money, its a pretty good way of conceptualizing the unseen costs of homeownership and ultimately accounting for them.

We just bought some INFY and since there has been some drama with the board, but that didn't seem to shake the market on it at all. In fact, the stock is up a bit.

With everything going on in our country, it might be time to prepare to be bearish on SPY. Now does that mean not getting more of it, or does it mean getting something to counterbalance it? For now, we'll just sit on it and see how things go.

We have basically put our lot into a diversified portfolio, but it's probably best not to have a portfolio that is ALL diversifiers, even if we have hedged our losses pretty well. Although, we've certainly sacrificed some gains too. We knew this going in, but what happens when there's a super-down global market? One consideration is that we don't know what would happen when global economic turmoil occurs--we're looking at your Greece! It might just come down to our appetite for risk.

Profit!