Monday, March 28, 2011

Portfolio Concentration - a good or a bad thing? Let's see!

Dear Reader,

Last week, I didn't post any ideas since I wasn't convinced. This week is another puzzle, but I am going to give it a try anyway.

The portfolio outcome will be based on today's (Monday) closing price and Friday's NYSE close.

I believe this week will be less volatile, so I need concentrated, volatile ideas.
Namely: Short USO (since the more the rebels advance on Tripoli, the more oil seems to retreat) and long SLV (gold is still a safe heaven, but I suspect if there is a positive change, it will be minute, so I am going to use the leverage silver provides). Each hypothetical trade will encompass 50% of the portfolio.


Disclaimer: Please be advised, this is NOT a reccomendation to buy the mentioned securities, commodities or their derivatives. This is just my personal, hypothetical view on the markets. I do not own any of the mentioned commodities(apart from regular day to day use) or their derivatives traded on exchanges, and options on indices and I do not plan to own them in the next 72 hours!

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