After all the doom-and-gloom of the market correction in July/August we seem to be back to irrational exuberance mode (expectations of world demand for commodities to continue rising even as the US heads towards a possible recession). The Australian stock market hit another "all time high" today. If there isn't a slump in the US overnight we'll probably end September on a high, which will mean that my net worth this month will also set a new record. The recent market rise has boosted the value of my leveraged stock portfolio, but as the market has risen the value of my Index Put Options has declined, somewhat offsetting those gains. The options are getting close to worthless at the current Index level, so any further market rise will be fully reflected in the value of my portfolio.
Copyright Enough Wealth 2007