IT’S been one week since we started the imaginary Make Us Rich Hedge Fund and we’ve already made a nominal $3.9 million.
And boy, we are walking on a make-believe cloud.
The next big opportunity, we believe, will come in the dollar and in stocks – shorting our currency and buying stocks.
Yes, buying stocks!
But not quite yet.
Last Friday we had a $3.2 million gain loading up on 30-year U.S. government bonds ahead of what we correctly believed would be a bad employment report.
And yesterday we cashed out of our short position against the Standard & Poor’s 500 indexfor a gain of about $700,000.
Total gain: $3.9 million.
Not a bad week’s work.
OK, right now our bogus billion in assets is sitting safely in cash as terrorists cause their havoc and Wall Street tries to figure things out.
We will probably short the U.S. dollar if the Bank of Japan raises interest rates at its meeting on Friday. If Japan surprises everyone by leaving rates alone, then the dollar should rise. We’ll probably invest after the B of J announces a move.