RailSignals

Betting on the US economy has been a good one most of the time.

With modern financial markets we have come to the point where

risk can be controlled very tightly. Not only can an investor profit

from growth of companies, but also he can bet the other way and

gain from a companies demise. Short selling, put options, and covered

calls are some methods to reduce the risk of loss in an investment.

It seems to me that one major key to maintaining and growing an

investment is to understand the direction that instrument is headed.

Wouldn't it be great to know that tidbit of information. Some hints

are gleaned from trends and policies of the sector and even the

national political direction. It is no secret that the US national debt

is increasing exponentially of late, and that has a direct effect on the

value of the dollar. Equities such as (UUP + UDN) US dollar up, US

dollar down, reflect these changes albeit inversely to each other.

You might use this knowledge to build a strategy giving positive

return in the face of the debts affect on the dollar.

The successful portfolio will be the one that looks at the world the

way it is, not the way we want it to be. If you put your dollar under the

bed, you will lose for sure. If you invest it wisely, you may still lose, but,

chances are it will grow thus making Bob your uncle. Dave 8-)