The PiggyBankBuilder Portfolio Challenge – Game Over

August was a pretty rough one for the markets and I shared in its pain. Here are my results:

  • Krogers (KR) – Purchase price – $63.53, number of shares 46. Current Price: $33.92  a gain of $198.34
  • Microsoft (MSFT) – Purchase price $46.76, number of 32. Current Price: $42.50, a loss of $136.32
  • iShares Silver Trust (SLV) – Purchase price $15.11, number of shares 99. Current Price: $13.99 a loss of $110.88
  • BlackBerry (BBRY) - Purchase price $10.82, number of shares 138, Current Price $7.47 a loss of $462.30

closedI’m down $511.16 or about 10%. As of now I am out, closing up shop. I set up a hard rule when I began this exercise that I would never allow my portfolio to lose more than 15% and while I am not there I don’t see how things will improve in the near term. Like Kenny Rogers says “You got to know when to fold um”. So I am walking away from this market and waiting to see how things pan out.

What went wrong? The popular consensus is China. The Chinese are very deceptive with their economic numbers. Some believe that they are heading into a recession, but no one can no for sure because of the perception that they are dishonest. I give some weight to this argument, but I don’t think that is the while story.

I believe that America is entering a recession and many people are worse off than they were back in 2007. I fear that the resulting down turn will be quite dramatic. I hope I am wrong and I feel confident that in the next two months I will know one way or the other. Fingers crossed.

 

***Please not that I am not and investment adviser.Please consult your investment adviser before making any financial decisions that could result in loss.

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