President Obama attempted to unleash creativity by announcing the widely anticipated new regulations designed to overhaul financial markets. The new regulations would increase some of the powers of the Fed but also add another layer of bureaucracy via a newly created consumer protection agency. For some straight talk, please read Mish’s commentary at Global Economics titled “Obama’s Blueprint for Reform …
Slipping And Sliding
Monday’s market drop continued Tuesday as economic worries persisted. The only saving grace for the bulls so far was that volume was very light again, and the S&P; 500 bounced off its 200-day moving average. Our Trend Tracking Indexes (TTIs) all retreated and are showing the following positions: Domestic TTI: +0.62%International TTI: +7.92%Hedge TTI: +0.03% Weakness has definitely set in …
Coming Off The Highs
A variety of forces combined yesterday and pulled the major indexes off their highs. Some kind of a correction was long overdue with the markets having enjoyed an extended run. It remains to be seen, if this is the start of something prolonged. Judging by the low volume, it does not appear that way but, nowadays, you need to be …
SPY vs. SH
Reader Joe had an interesting comment in response to Saturday’s post “Beating the S&P; 500 Index with an S&P; 500 Mutual Fund.”Here’s what he had to say: There is a flaw in your hedge – all Ultra-Long and Inverse funds have a “daily rebalancing” problem that causes them to all trend down over long periods. For example, if you bought …
Sunday Musings: More ETF Offerings
Reuters reports that “Flood of ETFs promising hedge style returns.” Let’s take a look at some highlights: Money managers are flooding the market with exchange-traded funds (ETF) and mutual funds designed to give even the smallest of investors access to hedge fund returns without all the usual restrictions or hefty fees. IndexIQ Advisors, a start-up firm that seeks to replicate …
Beating the S&P 500 Index with an S&P 500 Mutual Fund
I must admit that I have been having a lot of fun lately. Not the kind of fun you are probably thinking about; it was more the kind of fund that results from satisfying a curiosity as to what might happen when various scenarios are applied to an investment discipline. Sine I published my free e-book “The SimpleHedge Strategy” back …