Thursday, June 04, 2009

No more bear market (for now)

There's no longer any measure of the market that says we're in a bear market, so I can't justify holding a bear fund at this time. Therefore I've just entered an order to cash out of GRZZX completely. This doesn't mean that a bear market can't return - in fact I fully expect it to given the forward projected P/E ratio of 25 and ~3% dividend yield for the S&P 500. Hopefully I'll be able to get back in to BEARX GRZZX at an even lower price when the next bear market begins and recoup some of my recent losses.


vv said...

Why BEARX? Exposure to gold & hedging with long postions? Or did you mean to type GRZZX.

200 and 50 day MA for S&P 500 are close but haven't crossed yet. May/June of last year also had the S&P 500 moving above its 200 day MA only to crash again. Same thing happened in March/April of 2002.

Jody Wilson said...

Oops! I meant GRZZX. Wow, that was slip from some very old neurons.