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.

2 comments:

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.