Right after I finally got out of bonds in my 401K and went into small caps on an aggressive play ahead of the best 6 months of the year for the stock market (November – April), small caps broke through the 50 day moving average and have crashed down to the 200 day moving average.

It took me 8 months in bonds to gain what I just lost in less than a week.

The bond fund I was in crashed last week too so it’s not like staying in bonds would have been a good move either.

I’m so pissed off right now.

I’m not mad at God. I’m not mad at myself. I’m just MAD.

Now I’m drinking the hateraid, and somebody is going to pay.

Plan of Hate For 401K

The Federal Reserve is always a good scape-goat for hate as they drive sector rotation and the economic cycle.

I’m moving out of small cap stocks next week.

What fund in my 401K reflects the maximum level of hate against the market? No, not gold. Don’t try and trick me with that gold crap. The U.S. dollar is rising from rate hikes which is keeping gold down. It’s not until the Fed starts cutting rates and devaluing the dollar that gold will be a good safe haven investment.

OMG don’t even think bitcoin you sicko.

We have the Profunds Rising Rates Fund in our 401K and that’s where I’m going.

The Federal Reserve, at its core, is comprised of people looking out for their own banking interests.

These jerks are going to keep hiking rates until they put the economy into a Bear market before the next Presidential election. I’d like to think that the Federal Reserve is above politics but the Chinese sure are excited about the prospect.

What better way to play this jerk move than in a rising rates fund? The fund seeks investment results that correspond to 125% of the inverse of the daily price movement of the most recently issued 30-year U.S. Treasury bond. As the Fed hikes short-term rates and the spread between short-term rates and long-term rates narrows, investors sell out of 30-year bonds and move into shorter duration bonds, which pushes the rising rates fund up.

Of course you have to jump out of the rising rates fund before a bear market hits and the Fed reverses course and starts lowering rates.

Since we’re only as good as our last trade, for now I’m forced to eat my loser sandwich.

But I will get my revenge.