We all agree the internut mania is about to end, either by $30.00 oil or 7% long bond rates very soon. The fed is behind the curve on interest rates due to Y2K and other factors, and with this being an election year, my bet is they will catch up ASAP in order to avoid having to raise rates in the fall. I expect to see a .75 to 1.00 increase in short rates as quickly as the fed can manage to do so.
The question is where is the best place to invest during the transition? I've been looking at shorting the NASDAQ 100 through buying RYAIX, a speciality fund which performs the opposite of the NASDAQ 100 Index.
The decline of the .com companies should be the end to a long and painful bond bear market. RYGBX is a bond fund with an investment benchmark of 120% of the daily price movement of the current 30-year U.S. treasury bond.
In equities I intent to maintain my positions in the E & P and service sectors stocks. I believe they have more upside that most of the basic industries or other value stocks. Currently in KEG, MDR, OEI, PTEN, VPI, APA, XTO, DO, EOG, GLBL, NR, NBL, PGO and TBDI. Hoping to get back into RIG, TDW and BHI on any pull backs.
Anyone have any other ideas on the best way to capitalize on what is about to take place over in internut land?
Someone mentioned a fund on this thread that trades at two times the opposite of the performance of the NASDAQ 100 Index. Anyone recall the name of the fund?
Jim
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