Monday, August 22, 2016

August 21 Update: Keeping HDGE as insurance

The Schiff-Maloney portfolio continued to follow the bullish triangle pattern over the past two weeks, and its value reached an all-time high of over $112,800 on Thursday.  Presently it stands at $112,137.

I've been thinking about the bearish stance on the U.S. stock market using HDGE, and its seeming futility in the face of central banks buying tens of billions of dollars worth of equities, but I've decided to keep HDGE in the portfolio.  As much as the returns have been hurt by the rise in the stock market and the corresponding drop in HDGE, it provides vital insurance against a global market crash, particularly for retirees or people nearing retirement.  The portfolio has been making steady gains since November of last year, and that's more important than the performance of just one fund.

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