We hope for the best in 2012, but as always will prepare for the worst.
This will also be the year to deploy substantial portions of risk portfolios to developing markets.
A cheap stock can always get cheaper and it pays to cut your losses early.
I’m hopeful that longer-term trends should soon establish themselves, as markets always eventually do enter long-term trending stages.
It will likely take awhile for the global economy to regain its momentum.
2011 was a challenging year for investors, and for the Healthcare model it was particularly difficult.
We'll use a more conventional long/short equity approach in our other portfolio.
I now hedge VXX with a VXZ position or solely shorting VXZ, depending on the VIX term structure.
Investing is a zero sum game and a poker lesson applies to short-term trading: if you don't know who the sucker is at the table, it is probably you.
As this model aims to capture trends and needs to avoid invoking the pattern day trader rule, it is difficult for the model to perform well in choppy markets as 2011 was.