We like to follow a macro Washington script, ie our investment philosophy in the long waves based on what is going on in Washington.. The script for 2002 to 2005 was predominately long gold, from 2005 to 2008 it was long gold and then short stocks, from October 2008 it has been long stocks in increasing levels of leverage and now because of what is happening a little short gold and long dollar is being added. At the moment we are at only about 3 percent short gold and 2 percent long dollar in terms of overall exposure. Today we want to start to increase that with eventual exposure at 10 percent in this trade during the early period. Eventually we may go to 20 percent when the dollar index breaks out on the upside at 93.00.
Since our last all time Eureka Portfolio NAV high on January 6, 2009 was have seen our NAV pressured down by 16.1 percent on the Aggressive Portfolio, 6.6 percent in the Conservative Portfolio, while the stock market was down 17.6 percent. Since October 27, 2008, the start of the bottoming formation, the numbers look a little different, the Aggressive Portfolio Conservative Portfolio is up 11.6 percent, the Conservative Portfolio is down 6.5 percent and the S&P market index is down 9.3 percent. You all know the total bear market numbers to date from 10/7/07, Eureka Aggressive Portfolio is up 39 percent and the S&P 500 is down 51 percent.
The EMA ETF Fund NAV was 891 on the close Friday.
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