Monday, July 24, 2006

So you think the FED is done raising rates

If you are one of those people who believe that the FED is done raising interest rates (and I am one also) why not look to dollar neutral yield baskets. This is something that I had on and worked pretty well (even after the FED began raising rates). Basically I take a roup of currencies say Euro,Gbp,Cad,Chf,Aud,Nzd. I buy the three highest yielders and sell the 3 lowest yielders leaving me dollar neutral. This type of position fullfills my TRIAD THEORY, market's move three ways up, down or sideways, put on a trade that two out of three you make money and you increase your chances of being profitable. Just a thought, but certainly one I like. Currently I do not have this trade on put I am looking at putting it on in the near future.

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Anonymous Anonymous said...

Interesting idea....I will start with a "dummy" portfolio and see what happens

8:44 PM  

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