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Strategies & Market Trends : Booms, Busts, and Recoveries

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To: Condor who wrote (40088)10/23/2003 11:12:51 PM
From: energyplay  Read Replies (3) of 74559
 
Rydex Funds has a number of inverse funds -

RYAIX -Rydex Artos invers Nasdaq 100

RYVNX - 2X inverse Nasdaq

RYURX ? Rydex URSA inverse S&P

rydexfunds.com

What's the catch ?
1) Don't track perfectly - some slippage.
2) Lots of fees and expenses from buying puts etc.
3) ONLY buy /sell at a fixed end of day price.

1& 2 mean you will lose about 4 % a year (maybe 6-7% in 2X)
if the index stays flat.

So if you think Nasdaq might be down 10% in 6 months, these are not a good vehicle. If you think Nasdaq will be down 25% in three months, they may work for you.

BEARX is a more selective bear fund taht shorts specific stocks that Dave Tice thinks will drop.
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