Alternative Investment strategy for a Declining Market

There are several possible courses of action.

1) Retreating to the money market to preserve capital.

2) Bolding shorting S&P500 or Nasdaq100 or Russell 2000.
ProShares.com now offers ETFs for shorting or going long with leverage for some major market Indices. These new ETFs allow someone in an IRA to hedge their positions without suffering the limitations of trading mutual funds.

3) Exchanging to Sectors that move inversely to the Market.

4) Exchanging US Dollars to CDs in foreign currencies.
EVERBANK offers this service.

5)Hussman Strategic Growth Fund - HSGFX The Fund
invests primarily in U.S. stocks, with the objective of
long-term capital appreciation, and places added
emphasis on defending capital during unfavorable
market conditions.

6) Central Fund of Canada Limited ( CEF )
(At least 90% of Central's assets are Gold and Silver
at all times.)

7) The Merk Hard Currency Fund ( MERKX ) is a no-load mutual fund that invests in a basket of hard currencies from countries with strong monetary policies assembled to protect against the depreciation of the U.S. Dollar relative to other currencies.

The above selection or combination , depends on each
Individuals risk tolerance. What is right for one person
may be wrong for the next.



Most brokerages do not allow shorting from a
retirement IRA. ETFs ( Exchange Traded Funds )
remedies this unfair rule.

Rydex, ProFunds and SPDRS are excellent trading
vehicles that circumvent the many constraints and
penalties that brokerages wrap around outside
fund trading. It is best to open a Rydex or Profund account,
rather than trade these funds through your regular
brokerage account.

ProShares Home Page

Rydex's Precious Metals Fund ( RYPMX ),
may not perform quite as well as Select Gold.
However, there is no load fee and you can exchange
as often as you like.
Check out the Rydex Precious Metals Fund Chart.


An exit strategy, trailing stops, etc. are mandatory.