First, a thank you to all who gifted a membership or a one-on-one zoom meeting to friends and relatives. We think that they make ideal gifts. Consider it.

Next, our sincere gratitude to all members who took the time to respond to our Friday, June 3, survey about climate change. Time is an irreplaceable resource. We appreciate your involvement.

You can see our survey results below.

You can you read some worthwhile comments below.

It is no secret that I am calendar-challenged. Today’s post went out yesterday.  However…

… having had a chance to think more about what to do when the market opens today at 9:30 AM, our fearless, intrepid investor has come up with additional potential benefits. I will communicate these to you here.

She has been writing covered calls on Novavax (NVAX) on Mondays with expiry dates on Fridays of the same week.

Last Friday, June 3, NVAX closed at $44.76. That is close to the low end of its 52-week range. By buying more, she would lower her average per-share cost and be in a position to write more covered calls.

Questions:

Where will the money come from if she were to buy more NVAX shares? After all, this is her “fun” portfolio and should not exceed 10% of her overall stock market investments.

What is the worst that can happen?

What is the best that can happen?

From one of our members, an experienced, high net-worth person:

“My friend Milan Somborac has asked me to write about a recent problem that I had with my investments.  I am doing so with the caveat that my method is not the one followed in the MMM program.  I employ two investment managers and I manage a portfolio on my own, and in that portfolio I own individual companies, as well as ETFs.

“On the Memorial Day (US) weekend I learned that I may be facing an unexpected tax levy of $500,000 as a result of some transactions that I was unaware would result in these charges.

“A picture is worth a thousand words” has been stated in many languages. So is a chart.

Yesterday was the first of June, and our fearless, intrepid investor was able to see her “fun” portfolio performance for the month of May as reported by TD WebBroker.

The above chart says it all.

Most of the time, most “fun” portfolios are not much fun. With the habits of the Monday Morning Program, luck hardly matters. When writing covered calls, luck has an important role!

Call me (no charge) if you want to chat about this. (705-441-4566)

On January 3, the first trading day of this year, the S&P 500 reached an all-time high. From then on, it has been in a steady decline, with some fluctuations, even briefly reaching bear market territory recently. (A decline of 20% or more)

If you search for how to deal with bear markets, you will see a huge number of hits. The bottom line on most of these is that investors need to connect with an adviser.

We need advisers in many areas – taxation, wills, incorporation and on and on. The list is long. Accountants, lawyers, other advisers typically charge $300 an hour, minimum. Most of the time, the money that they save us exceeds their fees.

But when it comes to investing, almost no advisor can equal the S&P 500 over an extended period after fees. In 15 minutes or less, we can teach a high school student how to equal the S&P 500. Do it yourself. (Habit number two)

What about bull markets?

Like love and marriage, horse and carriage, you can’t have one without the other. Over an extended period, the S&P 500 has returned about 10% annually, bear markets notwithstanding.

There are many hedging strategies. Buying options, using managed futures, trend-following, alternative investment strategies are examples. Here too, the list is long. None is reliable under all conditions.

Well, people can ask what is reliable under all conditions? The Monday Morning Method is. Absolutely!

And what is the Monday Morning Method?

On May 22, 2022, from Alberta dentist Drew

I love the Q and A!

I was looking at VFV or SPY to track the S&P 500.
After the market fell 10 percent, I put in another 1/3 of the cash from my 50/50 asset allocation. But now, with it down between 15 and 20, I wasn’t sure if I was supposed to wait until the 20 percent drop to put in the other 2/3rds or if I could start hammering in some more cash into the ETF? Maybe another 1/3rd at 15 percent drop?

It is essential not to invest money which you will need in the next three years or so. Through a market cycle (peak to trough to peak), this is an effective way to invest.

We all need to invest. Saving alone will not buy us a comfortable retirement. However, no one needs to invest this aggressively. Simply maintaining our personal asset allocation will get us the results we want.

With the habits of the Monday morning program, luck hardly matters.

Good luck!

First, a thank you to all who gifted a membership or a one-on-one zoom meeting to friends and relatives. We think that they make ideal gifts. Consider it.

Next, our sincere gratitude to all members who took the time to respond to our Friday, May 20, survey about internal combustion cars (ICE) and electric vehicles (EVs). Time is an irreplaceable resource. We appreciate your involvement.

You can see our survey results below.

You can you read some worthwhile comments below.