Here's a statement of the obvious: The opinions expressed here are those of the participants, not those of the Mutual Fund Observer. We cannot vouch for the accuracy or appropriateness of any of it, though we do encourage civility and good humor.
Now, OJ; the etf's mentioned and apparently a tool used based upon the ariticle are tools any of us may use, too. I suspect there are some here who may use these eft's to a profit. I have viewed many of these etf's, too; but should I set aside 10% of the portfolio for these tools and attempt to consider them to use to offset what I think I see? Many off us use some mutual funds to do a similar job from the fact that we have funds that are invested in equities and other funds in a variety of bonds.
I will note that the exceptions do always exist. If one is assured that a trend is in place for a given sector, whether up or down movements; there exists an etf to cover just about everything. The VIX is cruising along the very low end of its range right now and has been in place for some time. Is this continuing to indicate that the market makers have a wide open, lets go forward without fear into the equity zones? An option for any of us with access to etfs may choose to play this, if we think that an equity reversal is overdue or may in place within the next several months. This does not mean that one has to play directly into and against the VIX; but instead may place inverse bets against the SP-500 or whatever one's choice may be; and can also go for the 2 or 3X methods, too. This whole "hedging" play is open to anyone with brokerage access. These tools were not in place to the average investor, just a few years ago.
Anyhoo, just jabbering outloud in print. Time to hit the pillow.
Comments
I suspect there are some here who may use these eft's to a profit.
I have viewed many of these etf's, too; but should I set aside 10% of the portfolio for these tools and attempt to consider them to use to offset what I think I see?
Many off us use some mutual funds to do a similar job from the fact that we have funds that are invested in equities and other funds in a variety of bonds.
I will note that the exceptions do always exist. If one is assured that a trend is in place for a given sector, whether up or down movements; there exists an etf to cover just about everything.
The VIX is cruising along the very low end of its range right now and has been in place for some time. Is this continuing to indicate that the market makers have a wide open, lets go forward without fear into the equity zones?
An option for any of us with access to etfs may choose to play this, if we think that an equity reversal is overdue or may in place within the next several months.
This does not mean that one has to play directly into and against the VIX; but instead may place inverse bets against the SP-500 or whatever one's choice may be; and can also go for the 2 or 3X methods, too.
This whole "hedging" play is open to anyone with brokerage access. These tools were not in place to the average investor, just a few years ago.
Anyhoo, just jabbering outloud in print. Time to hit the pillow.
Take care,
Catch