The much trumpeted fear index VIX closed @ 44.93 from a closing high of 77.39 a drop of 41.94%..when economic news are going from bad to worse...????
Common wisdom should have taken VIX above 100 to all time high since 1987....but it is NOT...
So..... what is VIX signalling to those who still believe in OPTIMISM about life in general & everything in it...including pursuing an exposure in equity...
VIX MAY be an index which will give us an indication of how high we will go from the lows if we just factor the % drop in VIX from its high.....
The gain in stocks MAY NOT come in days or months but certainly in long term approach.....
Currently we are STARING @ the biggest BARGAIN which IS WAY STEEPER than the CRASH of 1987......
BUT...the confidence in markets are so LOW thanks to SEC not doing their job..that FEAR is ruling our RATIONAL mind.....
But CHANGE is COMING to SEC......
Mary Shapiro is the new SEC designated chief...who will change INACTION into some serious CHANGES @ SEC.....
Free hand of one way MANIPULATION MAY come to an end in stock exchanges....which will bring confidence/money into stocks...
All these POSITIVE changes from ARROGANCE to CARING for the little guy & INTEGRITY of financial systems are only DAYS away......
Jan 20Th is only 21 trading days away.....when Obama will hit the ground running with 3 million Jobs programs on Day ONE.......
I am expecting a major RUNUP in markets into his taking office.......
I still believe that DOUBLE ETF is SAFEST way to play this market....
I PRACTICE what I PREACH......
Here is my allocation currently :
HOU.TO Crude ETF 21.4%
URE Real estate ETF 20.8%
HQU.TO Nasdaq 100 ETF 17.1%
HMU.TO World Mining ETF with heavy emphasis in Gold 40.7%
As you can see that even in Double ETF..I am broadly diversified.......to take advantage of MANY sectors....Because one NEVER knows which sector will take off first or by how much...
Please do your OWN due diligence & ensuring your OWN comfort level with your OWN strategy.
BLOG does NOT give buy or sell.
Saleem
4 comments:
Hi Saleem,
Your approach is logical. If you hold, in time you will be rewarded. Don't miss out on the specials that will be presented during the coming year. High fliers will spring forward for big gains (we just have to spot them). New products and ideas take off during recessions. Everyone stay alert! After 1987 it took two years for investor confidence to return. Once bitten twice shy, right? But we had no broad based internet back then, so your guess is as good as the next.
I'm riding on GS prediction of next April as turnaround. They have their fingers deeper into the pie than most of us.
Best Regards
MORNING TO ALL
BDI is down ever so slightly
DSX and DRYS are holding even-so far
The AGS are just awful as is MON!
We should have a good green day the market is like a coiled spring
Gas in DC is $1.65
Hi Standards,
I am feeling prety good with my ETF strategy.....It has worked out without the daily jitters of individual stocks severe UPS & DOWNS.....
Just need a low stress strategy till dust clears up.
Singles are better instead of trying for home runs.....
Good luck on your April strategy$$$
Saleem
Hi Madmax,
Gas is $2.87 US gln in Toronto area..lowest in many years.
Car sales are suffering in Canada also..dealers looking for incentive like tax credit for consmers to buy.....
Shipping stocks had great run...so a little pullback is expected...
MON is weakest of all AG???
Saleem
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