Meltdown instruments - inverse funds
You can’t tune it out - the meltdown clamor continues loudly, with Barron’s weekly featuring the word “recession” on this week’s cover.
I am currently studying instruments that allow me to short the bond market (inverse bond funds); I am already familiar with inverse stock funds, more commonly known as “bear funds.”
Both of these instrument types allow us to anticipate bad news without having to make a prediction that translates into an expiration date (as with options) . Unfortunately, I have tried neither and cannot warn you about fees or admin overhead.
Nevertheless, here’s some starter info:
* A tale of woe: “He had little fun with ‘inverse bond funds’”
* Another horror story: “Inverse bond funds burned investors in 2004″
* A little cheat sheet with linked tickers for three such funds.
* Here’s a little how-to trading and holding article with an eye towards expenses.
* Here’s an overview of stock and bond inverse funds.
* Here’s a bear (stock) funds scorecard. It’s looking pretty good, I think.
* And if you want to short individual stocks, this is a good technical view of the trading operation.
See you in the hedgerows…
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