Tuesday, November 9, 2010

Managed Duration Investments ETF -- MZF -- deleted

Today I deleted the Managed Duration Investments ETF (MZF) from the Barchart Van Meerten Speculative portfolio.  You may remember a few weeks ago I gave you a warning about the coming bubble in the fixed income market and it's beginning to happen.  Rates were about as low as they could go and there will be 2 factors that will make the fixed income market tank.  First, as rates go up the price of fixed income instruments will go down.  Second, as the default rates of many of the municipals income streams increase those muni's will be downgraded.  Now is the time to review all you fixed income investments and start trimming.

MZF was sold because:

  • Barchart 100% short term technical sell signal
  • Trend Spotter (tm) sell signal
  • Price lost 5.54% in the last month
  • Relative Strength Index is down to 27.98% and tanking

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