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Subject:  Re: Portfolio Strategy in a Global Down Draft Date:  9/16/2008  1:39 AM
Author:  Pituophis Number:  252207 of 479880

My strategy for the down draft has been simplicity itself, at least in my 401K, which is about 1/2 of my liquid assets and where my options are fairly limited -- I am 100% in a cash-like instrument that Fidelity offers, a "fixed principal annuity" that pays about 4%, since May 2007, except that I briefly went to mostly small cap funds from March to May 2008. So today I watched the carnage with interest as my account gained some insignificant percentage, though ytd it is up 11%. Admittedly this only beats inflation a little, but it has beaten the hell out of the S&P.

I basically have two pools of investment funds. In one I am extremely risk averse. In the other I take a lot of risk and concentrate my bets into a few sectors or areas, that is, I really diversify - I buy both gold AND silver (bada boom! <ggg>). I won't go into the details of my trading activity (again) except to say that I follow macro trends (that stuff we used to talk about on here a lot), trying to buy when nobody wants stuff and selling or shorting when people start saying things like "oil is going to $200!!!.