A.I.M. Users Bulletin Board

[Firebird400]

ADAM re RYTNX

RYTNX is suppose to mirror the SP500 index except with double the moves in both directions,, its a core holding of all 500 companies and futures/option contracts of the same 500 to double the volatility,, plus it holds a cash position too,, the adjusted ride for RYTNX would have needed a near 90% cash position in 2000 to ride it and buy it all the way down,,, Tom was kinda making the same point with QQQ,,, when the NAZ was at 5400,, then sunk to 1200 over the next 2 or so years,, I doubt anyone had enough cash to buy all the way down,, the Naz drop was near 80%,, tough to start 20/80 too,,, but running out of cash is very costly,, jibes site on tripod shows this with his re-bal aim,, 67/33 and 50/50 lose big in one example, like 60 something percent, but the same aim started at 25/75 in his example gains 49% because cash was available,,, 10/90 with RYTNX yields 7% over this period,, sure beats a 90% loss but I agree its a tough place to start