ProShares has exchange traded funds which are the inverse of major indices. Great if you're bearish on some part of the market economy for the next year e.g. small cap like Jeremy Grantham, Chief Investment Strategist, GMO.
This is a way you can keep your money invested, but actually profit when the recession worsens; great for non-sheltered accounts too, where holding positions 12 months to avoid the short term capital gains tax is a concern.
This is also a conservative way to hedge your long positions in the market, if you want some insurance "just in case" your portfolio loses value or the market sells off to a lower bottom. If you don't have insurance in a crash, whose fault is that?
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1 comment:
John Nyaradi of Wall Street Sector Selector agreed with me on Monday, June 30th in http://www.investorsalley.com/mc08/06-30/article2.html noting that ProShares inverse ETF's did good in June: PSQ (Short QQQQ), RWM (Short Russell 2000), SH (Short S@P500).
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