Wednesday, August 31, 2005

Markets Strength

The markets strength continues to amaze me. With talk of $ 4 gas, the market continues to make healthy gains. The biotech sector has come back strongly with Genentech making a new all time high. The biotechs are rallying after correcting to their 50 day moving average. This was a healthy correction for the biotechs and now they're ready to continue their upward trend. I have positions in the following biotechs: Amgen, Biogen Idec, Genentech and Genzyme.

I'm going to need to raise some cash soon. Here are some options in addition to my money market account:
  • Borrow from my margin account (borrowing against 20% of equity). When particular stocks hit predetermined tagets, I would sell to reduce the margin loan. (Possible)
  • Cash out some on some stock options. I may lose out on stock appreciation. The options don't expire for another 7-10 years. (Bad)
  • Start to do next day sale on the essp. (Good)
  • Borrow against my 401k? (Bad)

3 Comments:

At September 02, 2005, Anonymous NYC Money said...

Yup, I was expecting a total stock market disaster, but I'm actually ahead this week.

 
At September 03, 2005, Anonymous YoungMiser said...

I dont know if I could ever borrow to invest. I think it just opens up people to more risk, and there is already inherent risk when investing.

 
At September 03, 2005, Blogger Money Turtle said...

I would use margin as a short term loan. I would pay off the loan by selling off some stocks at more favorable levels.

I'm not using margin to invest in more stocks, just to raise some cash quickly.

 

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