We have Done this Exercise Before
The Group of 20 say they will keep money loose, that is good, the problem is that loose money is not being used for much other than market speculation at the moment. In order to stop an unfolding long-term deflation they have to get the man on the street back to work. It is not happening where I live and I don’t think it is happening anywhere. In any case the crowd that took the big loses in 2007 and 2008 are beating the bull drum again, so you know what to do.
Our positions have not changed since August 19th, our Aggressive Portfolio is short with a 1.54 leverage ratio, the Conservative Portfolio is short with a modest 0.13 leverage ratio, and the EMA ETF Fund is short with a 0.76 leverage ratio. The EMA ETF NAV was 1045 at Fridays close.
Today we are moving up our short leverage to 2.00 in the Aggressive Portfolio, 0.50 in the Conservative Portfolio and 1.00 in the EMA ETF Fund.