Monday, May 25, 2009

Dollar-debased Fund

I have designed and implemented an index fund (portfolio) to track the irresponsible polices being set forth by our government through the Treasury Department and the Federal Reserve System. It is called the "Dollar-debased Fund". This fund is an equally weighted index whose investment objective is tied to the debasement of the U.S. dollar through the quantitative easing (QE) policy of the Federal Reserve System. This policy along with the Treasury bailouts is highly destructive to the fabric of the U.S. economy and its currency (dollar). Therefore, the fund is designed to protect investors from the insanity of the current fiscal and monetary polices of our government and Federal Reserve System, respectively. A descriptor of each investment vehicle is as follows:

1. Gold Shares (GLD): A trust (Exchange Traded Fund) that holds gold bullion.
2. Ultra-Short 20+ Treasury Bonds (TBT): The investment (Exchange Traded Fund) seeks daily investment results, which correspond to twice the inverse of the daily performance of the Lehman Brothers 20+ Year U.S. Treasury index.
3. Crude Oil (DXO): The index (Exchange Traded Note) is a rules-based index composed of futures contracts on light sweet crude oil (WTI) and is intended to reflect the performance of crude oil.
4. Ultra-Short S&P 500 Index (SDS): The investment (Exchange Traded Fund) seeks daily investment results, which correspond to twice the inverse of the daily performance of the S&P 500 index.
5. Agriculture (DBA): The index (Exchange Traded Fund) is intended to reflect the performance of the agricultural sector (Corn, Red Wheat, Soybeans, and Wheat).

For the week ended May 22, 2009, the Dollar-debased Fund stood at 1.0115 (+1.15%) from its inception of May 21, 2009.

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