Strong Shipping Uptrend
After much consideration — and two very strong days for our shipping investments this week — I’ve decided to put 10% stop losses on all nine positions to lock in the gains we’ve made.
Chiswick, West London
Wednesday, August 6
By Tom Dyson, Investment Director
Alert: As of tonight, I’m putting stop losses on all nine of our shipping stocks.
Details below…
Each week, as I sit down to write, I try to put myself in your shoes and I wonder what safe strategies would be most useful to you.
The answer is always the same: Plot a course to sidestep the coming bear market and above all, avoid the Big Loss. And in the meantime, preserve the purchasing power of our savings while we wait for something that could take a while to get here. So cash, precious metals and some critical hard assets that pay dividends.
The decline in the Dow/Gold ratio from 23 to 12 suggests the bear market has already started. But it’s the next stage — where the ratio moves to 5 and the mood turns to extreme pessimism — that we’re preparing for.
If I’ve misread the room and you’ve got investment objectives other than the one I’ve pictured, please let me know at research@bonnerprivateresearch.com.
Right now, we don’t have any losing positions on our Official List. We currently have 14 positions and they are ALL in the profit.
Our average gain is 34.6%. And bear in mind, we opened 10 of these positions earlier this year, so the gains have accrued quickly.
Here’s the thing, I’m a catastrophist. And I see my life as a volatile stock chart. I walk around assuming that my downfall is just around the corner… that I’m never more than two wrong steps away from living in a cardboard box under Chiswick Bridge, swigging cheap liquor.
I am also superstitious about jinxing myself, especially after I’ve had some good luck, because I’m always expecting a downward trend reversal to begin any day in my personal life.
It’s also why I’ve had a hard time in the past hanging on to what turned out to be very profitable investments that I found. My former boss, Porter Stansberry says, of all the people he knows, I’m the person that left the most money on the table. It’s in the hundreds of millions, including bitcoin, gold and the two private businesses I cashed out of early. He didn’t mean it as a compliment, but I kind of take it as one.
Anyway, when we bought the nine shipping stocks earlier this year, our goal was simply to treat them as a boring income investment and make 15% to 20% in dividends a year, which would help us beat inflation.
Now, here we are in early August, that strategy has already handed us a 32% return… two years’ worth of returns in six months!
We’re not going to sell. But after much consideration — and two very strong days for our shipping investments this week — I’ve decided to put 10% stop losses on all nine positions to lock in the gains we’ve made.
Hopefully they keep rising and we can continue to profit from this strong shipping uptrend. But in case they don’t, at least we’ve locked in some of our gains. And then I will go to work finding the next opportunity to earn a little income.
Here’s the latest Official List snapshot. I’m using tonight's closing prices to calculate the 10% triggers. Please make a note of the trigger for each stock. They’re in the column on the right of this table. Anytime one of our positions CLOSES below its stop loss trigger, I will issue an alert and close the trade.