One of the more interesting "proofs" of financial astrology is its potential use in Unit Investment Trusts. These passively managed funds are held for a period of one year. Periodically we will post sample Afund UIT's. Note these assume units of $500,000 with a 2% management fee i.e. ~$490.000 to invest. Being astrologers, we naturally choose 12 stocks and will benchmark ourselves both against the DIJA and the "Dogs of the Dow" UIT.
Note: We start with a 2% handicap to take into consideration our fees and expenses, but not dividends and taxes, while DIJA and DIJA DOGS YTD % change figures do not include for dividends, commissions, or taxes.
The Dogs of the Dow UIT follows a simple strategy of investing in the ten highest divident-yeilding stocks of the Dow Jones Industrial Average (DJIA). It holds them for a period of approximately one year and then repeats this process annually.
The AFUND UIT follows a cosmic value strategy. Its looks for undervalued stocks that have positive horoscope indicators in the coming year. It attempts to balance members groups to anticipated market conditions and upcoming cosmic themes. It holds them for a period of one year or 18 months, and then repeats the process.
Our January UIT reached its annual goal of 25% ROI last week ~ 50% out performing other benchmarks. Our May UIT is more conservative and defensive, designed to out perform in down trends (and with a possible annual negative return). We expect similar out-performance over the DJIA/OEX, but this could be just +10-12% from current market levels. We are encouraging several clients to partake of our summer UIT's instead. We have quite a lot of stocks we wish to buy, but will NOT at today' pricing. Hopefully later in the year, prices will be reasonable. For tracking purposes only, the following are our selections for MAY:
Our May UIT expects only a 10-15% annual return (although outperforming benchmarks) given our cosmic value views for the next year.
AFUND 500K UIT selected 07/07/98 on the basis of our forecasts for 1998. Status as of 07/07/98:
| Name | Price | Quantity | Last | Change% | Value | Gain | INDU DOW JONES 30 | 9050 | 1 | 9085 | +0 | OEX S & P 100 | 535.370 | 1 | 563.29 | +5.23 | AFUND MAY. UIT | 500,000 | 1 | 479,593 | -4% | +479,593 | -10,574 |
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AFUND UIT Composite 07/07/98.
| Name | Price | Quantity | Last | Value | Gain | AAN ABN-AMRO | 23 15/16 | 2000 | 23 7/8 | 47,750 | (125) | AA Aluminium Co | 73 3/16 | 500 | 65.750 | 32,875 | (3,718) | AJL Amway Japan | 6 3/4 | 5,500 | 5 7/16 | 29,906 | (7,218) | CANNY Cannon | 22 15/16 | 2000 | 23.250 | 46,500 | 625 | CAT Catapillar | 58 3/8 | 800 | 53 15/16 | 43,150 | (3,550) | HOU Houston Ind | 27 5/8 | 1500 | 30.250 | 45,375 | 3,937 | IHITF Intl Hi-Tech | 9/16 | 50,000 | 0.750 | 37,500 | 9,375 | KF Korea Fund | 7 | 5,500 | 6 15/16 | 38,156 | (343) | MOT Motorola | 56 1/2 | 800 | 54 7/18 | 43,900 | (1,300) | NEM Newmont | 28 5/8 | 1,500 | 22 15/16 | 34,406 | (8,531) | NHY Norsk Hydro | 46 1/8 | 800 | 44 13/16 | 35,850 | (1,050) | UL Unilever | 45 5/8 | 1000 | 43 7/8 | 43,875 | 1,000 |
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PAST RESULTS ARE NO GUARANTEE OF FUTURE PERFORMANCE.
These forecasts are for demonstration purposes ONLY to show the value of financial astrology. Remember: Always check with your licensed financial advisor or broker before acting upon the recommendations of the Astrologers Fund. No specific recommendation is being made to buy or sell any security, future or option. Please read our DISCLAIMER.
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