I actually would intend to buy and hold GRZZX or SH. If you backtest a portfolio which is 1/2 SH and 1/2 SPY, you get exactly flat, zero, over a long period of time. Holding SH is OK, it doesn't deteriorate. A leveraged inverse ETF really would, however, be dangerous to buy and hold.
The fly I see in the soup is a big one... Central Bank Intervention. We need a situation where markets keep selling off even if Yellin is yellin'. Otherwise Yellin is going to stop you out, and you'll take a loss.
"The Upside Down"
Moderator: Global Moderator
Re: "The Upside Down"
Still watching. Still waiting. Shorts have gotten totally killed in 2017. I think I'd maybe go short with 5% into four different funds from different providers, for a total of 20%. Direxion (SPDN or CHAD), Proshares (many options, but maybe inverse NASDAQ or inverse Russell 2000), Leuthold (GRZZX), and Cambria (TAIL). Wake me up if the fireworks ever start.
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dualstow
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Re: "The Upside Down"
There are stranger things than shorting the market, and a lot of experts think it’s a healthy part of the system, but I don’t think I could bring myself to try it. Seems really hard to time.Shorts have gotten totally killed in 2017.
(Wasn’t that Reub’s line? When “Yellen is yellin”?)
Re: "The Upside Down"
You can get some courage from portfoliovisualizer.com. No matter what, the volatility is going to be soul-sucking. I'm not sure if I can do it either.