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KovuLK

04/30/06 7:13 AM

#2816 RE: Walkingshadow #2796

WS, Vestor, daaverage re: RYSRX


Rydex has an interesting fund that exchanges among sectors according to some proprietary quantitative parameters, and it does well (5-star rating). Since mid-2004, it has returned about 53% compared to 33% for the $COMPX, and with lower volatility.
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You are right on this. I just noticed that fund about a month ago. I am thinking that this would be a good basic fund to have with a group of sectors or index funds. Maybe use this instead of having money in cash or a income fund or growth/income fund. Dare I say buy and hold?? It does have some volatility at times but this is due to an overweighting in a sector that falls off, such as energy. At this time there is a real tight correlation between it and OSX. One plan may be to set a loose stop on it. It looks reasonably predictable. The reason I have not tried it yet is that I am hedging my funds with UMPIX, which is "king over most all" LOL. But still, this would be a good plan I believe. I will post if I buy any.

Thanks
kovu