Market Timing Strategies - May 1, 2008
The markets appear to be changing again and it seems like a short-term
bear market rally is in effect. We won't know for sure until the trend
establishes itself. Good earnings, benign GDP numbers and no surprises
are driving this rally.
For those using our timing signals we encourage you to adjust your long/short exposure. We currently have an 80% next long for our moderate portfolios and 120% net long for our aggressive models.
We have added QLD, FXI, and eliminated all commodity and precious metals positions. When the trends reverse, we will pick those up again.
Keep in mind that with absolute return investing that until the signals change completely you should be maintaining short positions in case of a sudden and sharp market correction. Hedge fund investing typically uses this approach for long/short strategies in this type of market climate to minimize risk. This market is still too unstable not to keep an eye on risk management.
For those using our timing signals we encourage you to adjust your long/short exposure. We currently have an 80% next long for our moderate portfolios and 120% net long for our aggressive models.
We have added QLD, FXI, and eliminated all commodity and precious metals positions. When the trends reverse, we will pick those up again.
Keep in mind that with absolute return investing that until the signals change completely you should be maintaining short positions in case of a sudden and sharp market correction. Hedge fund investing typically uses this approach for long/short strategies in this type of market climate to minimize risk. This market is still too unstable not to keep an eye on risk management.