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I had made a choice not to play gold, even though seasonality favours it at this time of year. First, I would rather invest in gold companies rather than bullion, and a big enough decline in the market causes everything to drop at the same time. At such times, even gold offers little protection. Second, I wasn't crazy about the idea of holding a more highly volatile ETF given the high market volatility. I am now thinking that was the wrong decision, but take comfort in not, potentially, putting funds at risk. I am all about risk vs. reward, although in this case I underestimated the reward potential Still, a dollar saved is a dollar I can use later.
20 month return for TSX @ August 31, 2012 = -10.94 percent
Return for Basic Timing Model Using XIU = 9.59 percent
Return for Advanced Timing Model = -4.36 percent
Money for charity = $0.00