My methods earn me a fine percentage return while the stock is dormant. I have all the patience in the world when I'm earning 20% or so while waiting for the needle to move higher as surely it will.
A company that will be growing earnings at an 8% or greater clip post-Lipitor won't have lowball PE's in the 7's and 8's for too much longer.
Did you not claim that a disaster was impossible at $29 as well, Toubob?
And at $28, $27, $26, $25, $24, $23, $22, $21, $20 & $19, where you cashed out for losses of hundreds of thousands of American dollars? And then immediately piled on more optimistic options positions, which cost you even more losses when PFE fell below $12.
And that PFE was "riskless" at those prices of $19 to $29, Toubob?
A disaster is almost certain.
If the Dow drops 10%, PFE is liable to fall 15.
If the Dow drops 20%, PFE is liable to fall 25.
But for an over-leveraged, under-diversified "player" of limited means in retirement, even a 10% decline in share price would be disastrous.
Idiosyncratically, I lost more money than I expected during the bear
market. Now that I got that money back and more between March and August,
I decided to be ultra conservative--which has been a terrible decision
over the past six months. Every trade I make is hedged.
I think the market is due for a correction, and I think BMY can fall more
than PFE. It's that simple. So far I'm wrong--I'm even on PFE and down
a nickel on BMY. My greatest fear is that BMY gets taken out, but my
play is not large.