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"
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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.
- 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”?)
9pm EST Explosions in Iran (Isfahan) and Syria and Iraq. Not yet confirmed.
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.