What's the best mutual fund for shorting the DOW?

[Riprorin]

Thanks!

 

[FeathersMcGraw]

I doubt you'll find a mutual fund whose prospectus says that its goal is to hold short positions on equities, particularly market indices.

 

[kranky]

There is a list of funds designed for bear markets here.

 

[FeathersMcGraw]

Originally posted by: kranky
There is a list of funds designed for bear markets here.

Or I could be completely wrong.

I guess I've just trained myself to look at downturn/correction environments as investing opportunities rather than going for money on the short position. I have neither the knack nor risk tolerance for trying to time the market.

 

[Riprorin]

I'm inclined to buy the Rydex Ursa Fund. It short the S&P 500, not the Dow.

I think there's another Rydex fund that's leverged so you're basically shorting 2x.

Anyone want to talk me out of this fund or out of shorting this market all together?

 

[kranky]

Do you want to invest, or do you want to gamble? No one can successfully time the market. Your safest course of action is to invest in an index fund and let it work for you over the years. Have you checked the expense ratio on that fund?

 

[Stoltenborg]

In case you didn't know of it.

Morningstar.

Regards,
Stoltenborg

 

[GasX]

1.why the hell do you want to short the dow right now?

2. why the hell would you want use a fund to short something?

3. why the hell do you want to short the dow right now using a fund?

 

[GasX]

btw, the answer to your question is: diamonds

 

[Riprorin]

Originally posted by: Mwilding
1.why the hell do you want to short the dow right now?

Humm, because I think the market is going to go down.

2. why the hell would you want use a fund to short something?

To spread the risk versus shorting an individual stock.

3. why the hell do you want to short the dow right now using a fund?

See response to 1 and 2.

 

[Nitemare]

Originally posted by: Riprorin

Originally posted by: Mwilding
1.why the hell do you want to short the dow right now?

Humm, because I think the market is going to go down.

2. why the hell would you want use a fund to short something?

To spread the risk versus shorting an individual stock.

3. why the hell do you want to short the dow right now using a fund?

See response to 1 and 2.

Aren't you a couple of years too late? It does not have too much farther to go. There are way too many excellent P/E stocks out there that are bargains for the Dow to drop much more.

 

[SP33Demon]

Originally posted by: Nitemare

Originally posted by: Riprorin

Originally posted by: Mwilding
1.why the hell do you want to short the dow right now?

Humm, because I think the market is going to go down.

2. why the hell would you want use a fund to short something?

To spread the risk versus shorting an individual stock.

3. why the hell do you want to short the dow right now using a fund?

See response to 1 and 2.

Aren't you a couple of years too late? It does not have too much farther to go. There are way too many excellent P/E stocks out there that are bargains for the Dow to drop much more.

You must be joking... our economy is GETTING WORSE!! Shorting right now is a great strategy... the market can only go down from here, regardless of how many times the FED cuts interest rates. The only reason the DOW hasn't crashed yet is b/c of morons who hold high consumer confidence. In response to your P/E ratios, you have got to be joking right?? Almost all of tech is still tens and even hundreds times over their P/E's before the bubble burst. In Layman's terms, they are bound to pop again.
Read this article and educate yourself please.

 

[Riprorin]

Would you be more inclined to short the S&P 500 or the NSDQ 100?

 

[Double Trouble]

I'm not sure what the best way is to short the DOW (probably not through a fund), but you could simply take a short position in the Amex S&P 500 "Spider" (SPY). It tracks the S&P exactly, so if you figure the economy as a whole is set for a tumble, that's the best way to go.....

 

[GasX]

Originally posted by: tagej
I'm not sure what the best way is to short the DOW (probably not through a fund), but you could simply take a short position in the Amex S&P 500 "Spider" (SPY). It tracks the S&P exactly, so if you figure the economy as a whole is set for a tumble, that's the best way to go.....

As I said above - Diamonds (DIA) are the way to trade on the Dow. Cubes (QQQ) trade thje Nasdaq 100...

 

[DaveSimmons]

fed i-bonds is a much safer way to make money in a down market, but suit yourself.

If I was certain the market was going to decline, I'd just put a good-sized chunk of money into my Schwab account to buy low. Much safer than shorting and hoping you get the timing right. But then I'm investing on the 20+-year plan not to make short-term profits.

 

[Hector13]

Originally posted by: DaveSimmons
fed i-bonds is a much safer way to make money in a down market, but suit yourself.

If I was certain the market was going to decline, I'd just put a good-sized chunk of money into my Schwab account to buy low. Much safer than shorting and hoping you get the timing right. But then I'm investing on the 20+-year plan not to make short-term profits.

there is no reason why shorting can't be a part of a long term strategy. You can't make long-term profits without making "short-term profits". If you feel stocks are overvalued, shorting is as legit as any other type of investment. Should you always be fully invested in equities because you are in it for the "20 year plan"? of course not.