My Maximum Midcap strategy is down 20% since its October high. In the past five years, it has declined farther than that only one time before recovering, and that time was down just 25%. The ensuing recoveries averaged +38% in an average period of seven months.
Tag Archives: perma ports
Getting Killed By Leverage
Yesterday’s article on leverage sparked conversation. It’s the conversation that’s always sparked by leverage because you invariably have to say that “it works both ways.” Andrew Tobias pointed that out in his inestimable The Only Investment Guide You’ll Ever Need. Wade asked: If the index falls 50% and you are leveraged 100%, don’t you lose […]
Putting Leverage To Work
I advocate the use of leveraged index vehicles in my stock book and newsletter, such as those offered by ProFunds, ProShares, and Rydex. Since I first did so five years ago, the strategy has been under attack. The point of attack is always the volatility of the strategies. The inevitable conclusion of the skeptic is […]
Don’t Miss Any More Of This Bull Market
Are you missing out on the bull market? Bespoke Investment Group wrote on Thursday: The current bull market is different than any other on record because there has actually been a large contraction in p/e ratios. At the start of this bull in October 2002, the p/e of the S&P; stood at 29.06. It is […]
Did You Miss The Rising Market?
Alan writes: Could you have timed your switch from bearish to bullish any better? That was brilliant. I’m kicking myself for not moving money into the market two weeks ago, when you first said to get back in, and then last weekend when you reiterated the call. My wife said the market looks scary with […]
