I proposed a portfolio last week made to profit not necessary from the collapse of the market but the long opportunities that will arise from the rubble of the mayhem. I’ll be tracking the portfolio using www.theupdown.com on the Subprime Insight group. I heard about the site from a friend of mine working for them and currently attending Harvard. The site is an interesting private equity project that gives individual virtual investors real money for out performing the market. I began the portfolio by placing market orders at the start of trading on Thursday. After the massacre on Friday, the portfolio has held its own with a 0.40% gain, or 73% annualized. That was the stress test, next week will be the profit opportunity. Disclaimer: I do not work in the financial services industry, I am not a CFA and I plan to invest in some of these investments. This is just my subprime insight.
The weighting last week:
Main Plays (75%):
- GLD (20%)
- DBA (20%)
- FXY (15%)
- RJI (10%)
- TLT (10%)
Supporting (25%):
- SLV (10%)
- FXE (5%)
- SHY (5%)
- TSCM (5%)
However, since then I have found some interesting new plays. So I’ll be placing new trades come Monday. I’ve also decided to step up the risk. I love risk. Here is the new portfolio: