Tuesday, April 27, 2010

Big Dustup Index Fund (BDUIF) Alert

I have been waiting for a stock market drop so that I can assess the performance of the BDUIF in a downward market, and thus determine the proper ratios of stock shorts to oil and gold.  Initial data today (with the market down due to the Greek mess) shows that I am potentially a little heavy on shorts -- which is what I suspected anyway.  After the market closes, I will perform a detailed analysis and post the results.

Hopefully, the market will continue to stay down, and close down today, so that I can get a good analysis.   In the recent past, however, market drops due to Greek sovereign debt crisis events have been limited to just a few hours.

In the mean time:  Gold and the stock market have parted ways today, with the market going down, and gold going up.  This is also due to the Greek mess, and is a very bullish indicator for gold.  It is the kind of trend split that the BDUIF is designed to make money on. It also confirms the position of gold as a hedge against economic turmoil.

Hard to say if it will continue, but I am picking up a little more UGL today on this indication.

I wish I had more of my net worth in the BDUIF today; all of my other investments are down significantly.

For a more detailed explanation of what the BDUIF is, click here.


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