I’m in dynamic inverse funds, which return twice the inverse. If the market goes down 25%, I’m up 50%. Of course I can lose, too. So I would have made a 60% return in 2000-2001 had I been in the Rydex fund (1500 to 1000 is 30% down, dynamic fund returns twice that). I’d be happy with that.
Sometimes last year’s high flyers can be next year’s duds, so there are no guarantees that the funds you mention will have a similar good year in 07. The Chinese can prop up the dollar even more, as our purchases from China decrease, making the dollar rise and gold fall. Temporarily. Likewise, the stock market could keep rising for many more months. Although the high rate of insider selling and falling Dow Transport stocks are indicating a sell-off should come soon, it could be months away.
