Suggest offsetting a CREAF position with one in a company that will benefit from a rebound in Asia.
CREAF will actually suffer from any rebound in the currencies, and you can get a clue as to how the market would react by looking at the intra-day charts of CREAF and, say, SUNW today. When SUNW headed up on positive pre-announced Greenspan remarks, CREAF headed down.
By holding positions that are in opposition on the Asian situation, you can try to remove Asian currency as an influence on you portfolio value.
Of course, you should choose companies with good long-term outlooks in either case.
(I went back into QNTM this morning, almost pounced on SUNW at 31 1/8, but passed. OK, actually, I missed it, placed an order at 31 1/8, ticked up, and I didn't chase it up.)
Don't think the risk in CREAF is large at this point, but holding these offseting positions will help to keep from panicking, as they will tend to balance-out the swings in your portfolio from the daily news of the Asian economies. |
