Choosing Between 'Income' and 'Growth'

Took myself flat on 52 positions today, most just 1-share, 4-shares, but the bulk of them losses I had let get away from me, especially my experiments with income-paying stocks and ETFs begun before the Fed had started raising interest-rates.

My current thought is this. If I want ‘income’, I need to buy --AND HOLD-- true fixed-income instruments, not bond substitutes. In fact, that’s how my portfolio is structured: T-Bills, a 50% weighting. (That is an outrageous over-weight. But it’s what makes sense to me right.) Notes & bonds (some of which were bought almost 20 years ago), a 45% weighting. (This is a serious under-weight, given that I’ve often been 100% in bonds. But it’s the best that can be done right now.) Between the two, they provide an income-stream that is 2x my current living expenses, or good enough for the girls I go dancing with.

If I want ‘growth’, then I need to stick with the things that offer quick price appreciation. E.g., I bought HudBay last Friday at an average cost of $4.66. Sold this morning for $4.96. That’s a one-day gain of 6.4%. And most of the stuff I bought last week I was able to turn around today at lesser, though still decent profits.

I’m ‘Chicken Little’ trader who hates ‘risk’. So I’m comfortable with no more than a 5% portfolio weighting to stocks and ETFs, and that weighting is currently running closer to 3.5% of AUM, or the rough equivalent of two PDT accounts, which is enough money that losses and gains are real. But if I lose every penny of it, my beer-and-bait lifestyle won’t be impacted.

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