Thursday, July 26, 2007

Markets Get Hammered - Hail Diversity

The markets are getting slaughtered today. As I write, the Dow is down more than 334 points on the day... The Nasdaq and S&P are down by the same percentages (2% roughly).

This is the kind of rough sledding that skittish investors dread, and experienced investors simply prepare for...

Witness our holdings in Bunge - a straight up commodity play that often zigs when the broad markets zag.

Today Bunge is UP 5.14%... and NMR is also rallying, up more than 2% amid this bloodbath.

Our portfolio is so far weathering this lightning storm pretty well... we've only lost about 1.08% while the Dow is off 2.44%... Again, there's always luck involved when this happens...

But is it just luck? Of course not. Diversification into commodities and commodity stocks is part of the plan. It's a hedge against broad stock declines, but it's also a great long-term bull play on the worldwide shortage in so many commodities.

Recall from my last post that I was looking to add another commodity-green play next... can you see the logic now? I do believe that the rest of the summer could get even uglier (as predicted in the spring on this blog).

But no need to panic... Let's just keep our course for now, mind our trailing stops and keep going.

Until then we're STILL long green,


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