Check out the new easy to read report here on the The Gateway Fund, or GATEX. We have been a fan of this fund since starting the firm and it continues to do what it should – track the large cap markets over time with less volatility. Here is an excerpt.
An investor doesn’t need to look any further than the performance of Dodge & Cox’s stock fund (DODGX) last year to realize that the investment environment has been turned upside down. Even the professionals can make big mistakes that cost money and cash flow for investors. It makes one pause and look for alternatives, such as Natixis’ Gateway Fund (GATEX), which attempts to track the S&P 500 with less volatility and thus less return. With an emphasis on dividend producing stocks, the fund engages in selling index calls to increase cash flow and buying index puts for downside protection. It is a long term investment vehicle similar to DODGX in the sense of large cap domestic companies, but has the added bonus of reducing volatility through its hedging.
Enjoy! And please feel free to add comments or criticism!
Check out the tapes – the market is going higher . .
Assessing whether we’re in a bull or bear market, with Peter Schiff, Euro Pacific Capital; Richard Sichel, Philadelphia Trust; Lee Munson, Portfolio Asset Management; Mark Kollar, Kollar Financial Strategies; John Buckingham, Al Frank Asset Management; and CNBC’s Dennis Kneale.
Discussing how to invest in this market, with Peter Schiff, Euro Pacific Capital; Richard Sichel, Philadelphia Trust; Lee Munson, Portfolio Asset Management; Mark Kollar, Kollar Financial Strategies; John Buckingham, Al Frank Asset Management; and CNBC’s Dennis Kneale.
I took the shot and hit some targets . . And yes, my clients are old too!!!
Discussing what’s the real deal with the summer rally, with Lee Munson, Portfolio Asset Management; Mark Kollar, Kollar Financial Strategies; John Buckingham, Al Frank Asset Management; and CNBC’s Dennis Kneale.
We continue to look for entry points while taking profits. This week was difficult for me as many of my positions hit limits and were sold. Friday more money went back in, but starting Monday I want to get long. The Bears just don’t get the amount of cash that needs to find a home with stocks not exactly being cheap . .
Debating whether it’s time to be bullish or bearish, with Michael Pento, Delta Global Advisors; Bill Smead, Smead Capital Management; John Browne, Euro Pacific; Lee Munson, Portfolio Asset Management; and CNBC’s Dennis Kneale.
I just read a tremendous piece from Doug Kass and he echo’s what I have been worried about for a while: I just can’t get a handle on the market. It was encouraging to see one of the greats say the same thing. While he is more articulate in outlining his rational behind the erratic behavior, I can see it in my trades.
So, were to we go from here? Smaller trading and investment positions. This means keeping 30% in cash reserves at all times just to make sure settlement issues are never a problem and I can trade 10% a day at will. It means never being fully invested for the rest of the year, perhaps longer. There is just no way of knowing which way the wind will blow. However, this will put a higher importance on short and intermediate term trading as it may be the only way to grind out decent returns in an era of substandard returns.
I say bring it on! Trading is hard, but letting clients (and mine!!) money sit around earning nothing is not an option. You have to preserve and simply take smaller bets as we go forward. This doesn’t mean you give up on profits! You win some, you loose some, but you keep on fighting. Only, smaller and more reserved for a while. . .
On another note, yesterday I sold my BAC too early and was mad as hell. The issue was the position size. I figured that everything I need to learn about my biz comes from my 1 year old daughter and the movie Wall Street.
1. My daughter has taught me to bounce back and recover fast. She has no memory of being sick or falling down.
2. Gordon Gecko was right: the most important thing is your capital reserves, it allows you play in the tall weeds with the big dogs. Now, for those that know the movie will note I sanitized that for our own protection.
