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Below
the results for 2007 (10 months) on 4 sample
portfolios.
The
results are LONG ONLY except short
QQQQ or Super Short ProFund QID.
S-QQQQ
= Short QQQQ
L-QID
= Long QID, which means same as shorting QQQQ.
(You
have to be careful with QID and other inverse ETFs, because they can
be confusing. When you go long on them, you actually short the general
market.)
| #1 |
% |
#2 |
% |
#3 |
% |
#4 |
% |
| QQQQ |
30.7 |
EWH |
44.6 |
DDM |
47.8 |
QLD |
82.9 |
| GLD |
27.4 |
GLD |
24.4 |
QLD |
82.9 |
FXI |
82.3 |
|
EWT |
24 |
EEM |
52.5 |
EEM |
52.5 |
GDX |
58.2 |
|
MDY |
27.3 |
GG |
68.3 |
SSO |
38.2 |
EWA |
76.9 |
| S-QQQQ |
10.3 |
L-QID |
17.2 |
L-QID |
17.2 |
L-QID |
17.2 |
| Total |
130 % |
|
207 % |
|
239 % |
|
320 % |
| Profit |
$13,000 |
|
$20,700 |
|
$23,900 |
|
$32,000 |
Above means that if you had $40,000
investment capital and had invested $10,000 on each of the 4
stocks Long only and would have shorted on QQQQ or QID with $10K you could have made a profit of
$13,000 with the portfolio #1.
Your $40K capital would have grown:
... to $53K
with the portfolio #1.
... to $63K with the portfolio
#2.
... to $64K with the portfolio #3.
... to $72K with the portfolio #4.
The above information points clearly out
that 2007 was a bull year (primary trend was up). In some cases
Long/Short results were actually less than Long only. But if we go into
a bear market the long profits will evaporate and the short
profits will increase a great deal because the primary trend
will be down. That's why it is important to be ready to short
when the markets go into bear market.
If you had the nerves to trade Long and
Short: QLD, QID, GDX and GG the results would have been: (348%) $34,800 profit on a $40K investment capital. That's a
profit of 85%.
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