On a happy note, the Mosaic RYDEX model is holding solid amidst the recent market volatility. In some ways the RYDEX approach results are superior to an ETF bsed Mosaic model, reflecting the way most RYDEX funds are engineered with a leverage skew. The per share pricing of the RYDEX funds also means less capital is required to construct a “contract” position and with most brokers there are no commissions although there may be early redemption fees. An ETF based Mosaic has the attractions of option hedging and/or the use of LEAPS to build a Mosaic proxy..a tactical approach I am currently exploring. Also in the works, an ETF based Mosaic model using Fidelity no commission ETFs. This feature is particularly attractive for the AM (actively managed) model, which may require daily maintenance. As our floating 1000 day lookback moves closer to the 08-09 chasm the disparity between the performance metrics will become much more obvious.
On a sad note Levon Helm passed away yesterday. As drummer for the BAND, arguably the most sophisticated rock and roll band that ever played a lick, Levon’s voice and style were distinctly unique. In a bizarre twist of fate Levon succumbed to throat cancer. He will be sorely missed.
