Filed under: Major movement, Newsletters, Mutual funds, S and P 500, DJIA

For those who wish to hedge a portfolio against downside risk, Nate Pile suggests a pair of ETFs that benefit from a market decline. Here is the latest from his Nate’s Notes.

“Although I would argue that much of the potential bad news has already been factored into stock prices, one of the mantras I have come to respect over the years is ‘don’t find the trend’… and the trend is currently down.

“Thus, I believe it would be foolish to not take at least a few cautionary steps with regards to protecting our portfolios until it becomes more clear just how bad things are going to get.

“As a result, I am recommending two ’short fund’ ETFs as short-term investments — ProShares UltraShort Dow 30 (AMEX: DXD) and the ProShares UltraShort QQQ (AMEX: QID). Both are designed to provide results, before fees and expenses, which correspond to the inverse of the performance of their respective indexes.

Continue reading Inverse ETFs: Hedging downside risk

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This entry was posted on Monday, February 4th, 2008 at 2:27 am and is filed under Stocks Money News. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.