Dow Jones Industrial Average Is Walking Out Its Downtrend

It closed up today and the week so it’s following through the big shoot up the other day. As we can see that on the daily chart, it’s in short-term over bought condition now. It’s slowly walking out the downtrend line, but we should be cautious as the volume was not confirming.

If you have significant equity positions in your portfolio, any rally into 9,500-10,000 zone can be your opportunity to lighten up and preserve your capital during this bear market.

Some info on stable value funds …

Here’re some facts and links that may help anyone who is researching on stable value funds.

Personally, I put all the cash in my 401(k) into a GIC, which works just like a money market fund as sweep account to trade other mutual funds in the 401(k) account. Currently it yields a little over 4% annually.

Stable Value Funds

Preserve principal and earn a stable rate of return. Their current average yield is around 4%.

Funds own high-quality asset-backed securities, corporate bonds, U.S. Treasuries.

Funds have returned 7.19% annually over the past 10 years, vs. 5.28% for money market funds and 8.45% for taxable bond funds.

The links in no particular order:

  • SEC Splotligh on Stable Value funds