Monday, September 24, 2007

Currency Harvest Moves with the S&P 500

The Currency Harvest fund (DBV) is a great fund to own during a bear market, but it turns out to be a poor defensive fund during a bull market.
Looking back at its historical performance, DBV has experienced corrections of its own around the same times that the S&P 500 did. Such paired bull-market corrections include: 1998, 1999, 2004, 2006 and this year's July-August correction.

I require a defensive fund to go up during a correction more often than it goes down, and unfortunately DBV doesn't fit the bill.

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