The Dollar Cost Averaging Experiment Results thru 5/31- CEF Continues to Lag

Recall the objective of this experiment is to produce double digit returns by dollar cost averaging into either financial assets or hard assets based on where we are in the cycle.  I contend that we are in the hard asset phase.  Read “The No-Brainer Investment Strategy to Double Digit Returns” for more details.

Gold and Gold stocks continue to lag the broad market.  However, their action this week especially on Thursday and Friday looks promising.  For the week, CEF 3.3% and GDX 4.7% v. S&P 500 1.3%.  It looks like their days of underperforming may be numbered.

Here is the latest update:

Table 1. CEF, GDX vs. S&P 500

  CEF GDX S&P 500 CEF GDX S&P 500
  Closing Price Closing Price Closing Price Mon. Return Mon. Return Mon. Return
5.31/07 9.16 39.16 1530.62 -3.0% -1.0% 3.3%
4/30/07 9.44 39.56 1482.37 0.4% 0.0% 4.3%
3/30/07 9.40 39.57 1420.86 -2.7% -0.8% 1.0%
2/28/07 9.66 39.90 1406.82 1.2% 0.8% -2.2%
1/31/07 9.55 39.60 1438.24 2.2% -0.8% 1.4%
12/29/06 9.34 39.91 1418.30      

Note: $1000 invested each month in CEF (total $5000) is worth $4832.94 (-3.3%).
Note: $1000 invested each month in GDX (total $5000) is worth $4931.08 (-1.4%).
Note: $1000 invested each month in S&P 500 (total $5000) is worth $5341.22 (6.8%).

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