MarketBook 3/7/08

The weekly closed for the market ended 4% down and I was right in line with that.  My week was fairly inactive, except for some structural changes to my portfolio.  I have set up my system more clearly to target my different strategies (i.e., income, value, growth, etc), and have broken down my holdings to reflect those strategies. 

Another component that I have built in efforts to recession-proof my portfolio is to develop an fixed income strategy to my assets.  Thus, I have started to purchase a few individual equities and ETFs that will hopefully reflect some positive growth through recession, but will maintain a healthy dividend more than anything. 

I also developed a more defined strategy to focus on emerging markets, and while I only purchased one ETF in that strategy (PXH), this is something I am going to start focusing on more closely.  Furthermore, I am defining my commodities strategy, and am specifically watching oil, trying to decide how I am going to approach that. 

Everyone tells me I am crazy to short it, but I know at some point in Q2, it is going to drop.  As a result, I am exploring a couple of options plays; however, I am limited with USO and OIL, as the latter does not have any options chains available and I am still trying to figure out my strategy for the former.  I am still considering the ability to short oil, although, I am limited at doing that too (as a result of my trading system). 

Practically every single bit of data released this week was negative, and then today, the media acted surprised to report we’re heading for recession.  Go figure …


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