Patience
September 30th, 2007 by 
reality
Divergences between the real world and the quant-driven stock market are increasing. When will the rubber band snap?
| Measure | September | YTD |
|---|---|---|
| Absolute Performance | (6.37)% | (7.13)% |
| Relative Performance | (10.72)% | (20.98)% |
Relative performance is based on Fidelity Magellan, FMAGX.
9/30 portfolio.
| Asset class | % Allocated | Comment |
|---|---|---|
| Energy | 0 | |
| Absolute Return Funds | 0 | |
| Market Timing - Bear | 10.15 | Inverse funds and put options equiv. to 200% short (basis total equity). Overall, counting the sector-specific shorts, I’m about 300% short. |
| Market Timing - Bull | 0 | |
| Metals & Mining | 0 | |
| Real Estate | 10.20 | Put options on homebuilders XHB, and the banking indices, BKX,MFX, RKH and XBD |
| Tech | 1.53 | Put options SMH, XLK. |
| Fixed Income | 64.76 | Mostly T-bills, 2-year bonds, and a small long bond position. Also some WHOSX (Treasury-only fund) |
| Cash | 13.36 |
Posted in * Portfolio changes, Asset Classes, Strategy & Scenarios | 