Sunday, May 07, 2006

Troubling Chart for those not from the US/UAE

Fidelity Emirates Managed Equites Portfolio: $17.27 (04 May)
MLIM Emirates Managed Equites Portfolio: $16.09 (04 May)

The markets enjoyed another week of gains with Fidelity gaining +0.82% and MILM gaining +2.09%.....BUT the U.S. dollar has been getting a kicking the past 2 weeks. This has me looking at the following chart VERY carefully (if you click on the chart it will expand and you will be able to see it clearly):

As you can see, it appears that while the DJW index is continuing to enjoy gains in USD terms, in the Euro, Aussie dollar and British pound it is actually in the early stages of a decline.

Based on what I'm seeing, I am looking to move 50% of my portfolio out of equities next week and put them into cash. Which currency I have not decided yet but will publish when I make the move and where it has gone.

The remainder will stay with the equities for now (half in Fidelity and half in MLIM) but as soon as the charts indicate a trend change in the DJW index I will be moving into 100% cash.


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