Over the past few months, I have made several successful calls and have earned an 80%+ return on my simulated portfolio; not to mention, my real life portfolio. Back in March, I began buying into quality REITs that could be had for bargain-basement prices. I have continued to research more companies in the REIT sector, most recently writing about DCT Industrial Trust (DCT) in late July. I recommended buying into Discover Financial Service (DFS) under $7 in late April; it now trades near the $14 mark. I even argued that microcap boat and yacht dealer MarineMax (HZO) could be a great buy under $3.50. HZO now trades over $7.50.

Given the market’s run-up, however, my views have shifted a bit. Once we tipped over Dow 9000, I felt as if we were entering a “change of seasons” and that it was time to start shifting my portfolios a bit. Marine Max might’ve been attractive at $3.50 and Discover might’ve looked good at $7, but at the current prices, I believe risk exceeds reward potential, so they are not great buys any more. The market changes quickly and you have to stay ahead.