Investing for the Long Run Message Board

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Strategies & Market Trends : Investing for the Long Run

Public Reply Prvt Reply Mark as Last Read File

Previous 10 PreviousNext

To: tyc:> who wrote (67)	11/14/2007 11:10:38 AM
From: tyc:>	of 68

Blog continued... Arising from recent postings, I have made a nifty change in my strategy. (Caveat emptor) ! The results remain to be seen but.... My benchmark will remain XSP.to, which is the S&P500 hedged to the Canadian dollar. (Just because it is my benchmark doesn't imply that I am heavily invested in it..... but I am... and I also hold SPY which is the S&P500 unhedged !) According to my understanding, "Hedged to the Canadian dollar" implies that there is both a relationship to the S&P 500 AND a relationship to Canadian dollar. If the CAD price is stable, it doesn't matter whether one owns SPY or XSP.to.... both will perform the same. However if the Canadian dollar trends UP as it has in recent years, in Canadian dollar terms, XSP will outperform SPY. SPY may perform well, but XSP will perform better. I have enjoyed this ! Conversely, IF/AS the Canadian dollar weakens, SPY will outperform XSP.to; (XSP would perform miserably if the S&P drops further AND the CAD weakens) I am therefore monitoring the Canadian dollar ($CDW). Every time it touches a new two-week low I shall trade some XSP.to for SPY. Conversely, if it continues to strengthen (above $1.10US) every new two week high will see me sell SPY to buy XSP. Should be good practice for "trend following"

Report TOU Violation

Share This Post

Public Reply Prvt Reply Mark as Last Read File

Previous 10 PreviousNext