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1 posted on 03/16/2009 8:59:06 AM PDT by Liberty1970
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To: Liberty1970

It’s typical for investments to play the volatility profit card before and during monetary announcements. Since volatility goes up during congress crap, they bet on options whose price temporarily and suddenly surge.

It’s an interesting fund model which could be developed to all spheres of “announcements”, and both expected finds or opposite loss/disaster anticipations.

Other things to look at are:

stock buy backs by corporation. Buy when they buy their own, not when they float or issue, except maybe for the minute of euphoria (not these days)

Bear depression stocks are low cost consumables companies and entertainment, the activities people have when out of work.

Then you got anti inflation hedges such as metals and other semiraw reusables as well as revenue tanks, ie if you make dividends, reinvesting those in favorable hedging engines such as swaps or even simple bonds.

Last but not least are death oriented scavenger businesses such as autowreckers, parts companies, lawyer backed entertainment companies such as Microsoft or Sirius I heard.

It’s a jacka$$ market these days.


2 posted on 03/16/2009 9:12:14 AM PDT by JudgemAll (control freaks, their world & their problem with my gun and my protecting my private party)
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To: Liberty1970

The high expense ratio makes me think its just a gimmick. A typical index fund, since it is not actively managed, will have an expense ratio under 1%. This investment basically moves in and out of the S&P index.


3 posted on 03/16/2009 9:44:18 AM PDT by waverna
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