Moving Further into Bonds

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.



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