Investing is akin to driving. You start and point A and want to get to point B, but you don’t go there in a straight line. When the road turns, you turn with it.
The same goes with the market. Earlier this year TheStreet.com interviewed me asking for my favorite ETFs. At the time commodities were rising so I chose an inverse bond fund and an energy fund. The inflation road turned as commodities plunged. Inflation is less worrisome so an inverse bond fund is no longer appropriate.
Commodities have sold off but so have equities. So much for the theory of diversification helping an investor avoid draw-downs. The panic of the 2008 credit crisis is underway and people are re-evaluating their portfolios. Unfortunately the time to make portfolio decisions is not during a crisis. More on that in an upcoming blog. In the meantime, here is a short interview in today’s Tahoe Bonanza:
http://www.tahoebonanza.com/article/20080917/NEWS/809169965/1050&ParentProfile=
David Vomund
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