Stock markets have continued their decline that began at the beginning of June 2011. The chart below shows the sharp decline in the DOW (^DJI) since 30th May and the pleasing incline in the DEX (XBB.TO).
I have today increased my bond holdings from around 30% to around 40%.
- SELL S&P Fund @ $102.07
- BUY Bond Fund @ $202.64
One month after this trade, on 13th July 2011, it looks like a bad call. The bond fund is up around 1% while the S&P fund is up 3%. I failed to predict a minor rally in the S&P that occurred in late June and early July. I don’t feel too bad about this: predicting short-term moves in the market is hard.