Terrible Timing
About two weeks ago, I sold off a bunch of BMO ETFs and put almost all of it into a Hamilton Covered Call ETF that I thought was pretty well diversified. It’s part of my reluctant acceptance that I need to put some more risk into the portfolio, and I can’t sit entirely in cash/money market funds.
Of course, the stock price is down 2.5% since I entered on June 9…
What’s the explanation for this?
No, the stock did not go ex-dividend. That happens at the end of the month.
It might just be the cyclical up-and-down nature of these types of investments. I have to learn how to time an entry point into a cyclical low point instead of buying on the day I have the idea to. 🙂
If we look at six months of history, we can see it goes up and down four or five times.
Of course, if I can hang on to this stock for a year, I’ll have cashed the 10% annual distribution, and the ups and downs won’t feel so bad.
Or even better, I should buy more when it is close to its 52-week low.
