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Strategies & Market Trends : Mish's Global Economic Trend Analysis -- Ignore unavailable to you. Want to Upgrade?

To: mishedlo who wrote (91276)	12/7/2008 4:11:53 AM
From: mishedlo	2 Recommendations Read Replies (1) \| Respond to of 116555

Weekly Economic Potpourri December 7, 2008 globaleconomicanalysis.blogspot.com Every week there are a numerous headlines that are worthy of mentioning but I simply run out of time. Here are a few headline news reports of interest from the past week. ... Mish

To: mishedlo who wrote (91276)	12/7/2008 11:01:06 AM
From: Mike M2	Respond to of 116555

Mish, the ETF DUG illustrates your point very well look at a chart of oil vs DUG since July. DUG is a great trading vehicle but not a buy & hold.

To: mishedlo who wrote (91276)	12/7/2008 12:52:26 PM
From: Sr K	Respond to of 116555

Here's how SKF changed in 3 weeks, from 11/14 to 12/5: 11/14 to 12/5 Net Other Assets / Cash and Top 10 11/14 Net Other Assets / Cash 8.572% 1 JPMORGAN CHASE & CO COM 8.401% 2 WELLS FARGO & CO COM STK 7.092% 3 BANK OF AMERICA CORP COM 5.772% 4 CITIGROUP INC COM STK 3.658% 5 US BANCORP DELAWARE COM 3.205% 6 BANK OF NEW YORK MELLON 2.430% 7 GOLDMAN SACHS GROUP INC 1.877% 8 TRAVELERS COS INC/THE 1.746% 9 VISA INC USD0.0001 'A' 1.709% 10 PNC FINANCIAL SERVICES 1.521% ............................ 37.411% Market Value 1,786,845,272.54 12/5 Net Other Assets / Cash 13.424% 1 JPMORGAN CHASE & CO COM 7.592% 2 WELLS FARGO & CO COM STK 6.907% 3 BANK OF AMERICA CORP COM 5.011% 4 US BANCORP DELAWARE COM 3.291% 5 CITIGROUP INC COM STK 2.768% 6 BANK OF NEW YORK MELLON 2.261% 7 GOLDMAN SACHS GROUP INC 1.860% 8 TRAVELERS COS INC/THE 1.690% 9 VISA INC USD0.0001 'A' 1.566% 10 AMERICAN EXPRESS CO COM 1.471% ............................ 34.416% Market Value 2,319,609,401.37

To: mishedlo who wrote (91276)	12/8/2008 4:26:38 PM
From: forceOfHabit	2 Recommendations Read Replies (1) \| Respond to of 116555

mish, The simple fact of the matter is shorting has no "such slippage". Such slippage means no losses when a stock retraces. [blah, blah, blah] I am ignoring the once cent per share (or whatever) trading fees there are trading ANYTHING. You are also ignoring (or are ignorant of) borrow fees. You are also ignoring bid/ask spread. Most importantly, if your long/short fund has a mandate to be market neutral, then you are also ignoring the fact that to maintain market neutrality requires rebalancing and the associated slippage. So either your "Hedged Growth" portfolio ignores its own mandate, or it has slippage, or you are ignorant of its return characteristics, in particular, slippage, and its volatility exposure. Which is it? Inquiring minds want to know. habit