{"id":187,"date":"2009-11-08T05:01:26","date_gmt":"2009-11-08T05:01:26","guid":{"rendered":"http:\/\/euvolution.com\/futurist-transhuman-news-blog\/?p=187"},"modified":"2009-11-08T05:01:26","modified_gmt":"2009-11-08T05:01:26","slug":"energy-vs-financials-results","status":"publish","type":"post","link":"https:\/\/www.euvolution.com\/futurist-transhuman-news-blog\/futurist\/energy-vs-financials-results.php","title":{"rendered":"Energy vs. Financials, RESULTS"},"content":{"rendered":"

<\/p>

On April 22, 2008, I wrote about how the Energy and Financial sectors had diverged from each other, up to that point, to a degree that rarely happens between any two major sectors of the market<\/a>.  I proceeded to suggest a trade of shorting Energy while going long on Financials.  <\/span><\/p>

Let us see how that trade turned out, about 1 year after it was suggested.  <\/p>

\"EF\"<\/a> <\/p>

Both sectors did worse than the S&P500, but as we were short on Energy, this is favorable.  With dividends reinvested (which for Financials, were substantial), we come to total returns of :<\/p>

<\/a>\"Results\"<\/a>  <\/p>

So this trade earned a return of -5.36%<\/span>, vs. -32.20%<\/span> for the S&P500.  This is a dramatic outperformance relative to the index, even though staying in cash would have been even better.<\/p>

For a next step, I would cover the short on Energy, and double down on my long position in Financials, given the low current price of Financials. <\/p>","protected":false},"excerpt":{"rendered":"

On April 22, 2008, I wrote about how the Energy and Financial sectors had diverged from each other, up to that point, to a degree that rarely happens between any two major sectors of the market.  I proceeded to suggest a … Continue reading →<\/span><\/a><\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"limit_modified_date":"","last_modified_date":"","_lmt_disableupdate":"","_lmt_disable":"","footnotes":""},"categories":[10],"tags":[],"class_list":["post-187","post","type-post","status-publish","format-standard","hentry","category-futurist"],"modified_by":null,"_links":{"self":[{"href":"https:\/\/www.euvolution.com\/futurist-transhuman-news-blog\/wp-json\/wp\/v2\/posts\/187"}],"collection":[{"href":"https:\/\/www.euvolution.com\/futurist-transhuman-news-blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.euvolution.com\/futurist-transhuman-news-blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.euvolution.com\/futurist-transhuman-news-blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.euvolution.com\/futurist-transhuman-news-blog\/wp-json\/wp\/v2\/comments?post=187"}],"version-history":[{"count":0,"href":"https:\/\/www.euvolution.com\/futurist-transhuman-news-blog\/wp-json\/wp\/v2\/posts\/187\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.euvolution.com\/futurist-transhuman-news-blog\/wp-json\/wp\/v2\/media?parent=187"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.euvolution.com\/futurist-transhuman-news-blog\/wp-json\/wp\/v2\/categories?post=187"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.euvolution.com\/futurist-transhuman-news-blog\/wp-json\/wp\/v2\/tags?post=187"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}