Monday, October 6, 2008

Short ETF's: Money on the Downside

Can you make money shorting the market without shorting specific stocks and exposing yourself to individualized risk? Yes. It's still dangerous and requires quick timing for a few reasons: inherent bias that markets usually go up, recent political intervention in markets, and risks within the ETF product itself. But, if you're convinced the market will go down during a specific time period, you can participate in that market.

Here are some basic resources regarding Short ETF's.

List of Short ETFs.

Yes, there is some counter party risks in ETF's. Pick the right ones.

Double short pro-shares here.

ETF Index.

Inverse funds here and here.

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