Microsoft was actually a reasonable performer over the last three years I built a good holding but lately it was a little lack lustre. So looking around I decided to Sell out of my last stock in a Tech company. So I needed somewhere to park the cash for a while.
I have mentyioned my previous almost disastrous holding of Bank of America (BAC) I began investing there in 2006 for the then dividend of 50 cents per share. The investment at that time left me with average buying prices in the $50 region.. A lot of cash was tied up in an almost worthless stock a couple of years ago.
I began buying additional stock in BAC at the $5 level and this brought my averages down to the $20 then as I bought more the average has come down past $15.
Well I decided to park the Microsoft cash in Bank of America. This actuall doubled my holding and has left me with an average purchase price at just above $14.
I think this is a reasonable level to be able to take a chance at getting some of my cash back. BAC could even reach #14 by the end of this year if we only assume a 15% increase in its price. I think it can do that easily.
From there as I call back my cash I am considering buying into a Tech ETF such as the SPDR Technology ETF (XLK). Technology is getting to be a tough call with all the global corporations fighting for market share. I could not call Apple (AAPL) or Samsung, Microsoft or Apple. Qualcomm or Samsung or Intel. A tech ETF will give me a more widespread risk on an important area for my portfolio.
Intil then. I am out of Tech and going Financial.