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Strategies & Market Trends : The Residential Real Estate Crash Index

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To: patron_anejo_por_favor who wrote (148073)9/21/2008 2:40:17 AM
From: XBrit of 306849
 
<<SRS is really a pretty crappy instrument compared with simply shorting IYR>>

I totally agree about SRS. Any Ultra fund (long or short) whose underlying has high random volatility will have really bad slippage because of the basic math of how they work:

siliconinvestor.com
siliconinvestor.com

SDS is OK for long-term hold because the SPX index has relatively low random volatility:

finance.yahoo.com

But SRS, SKF, FXP etc. are terrible:

finance.yahoo.com

However, the double long funds also slip a bit. So I think shorting URE will probably be better (and give you more bang for the buck) than IYR.

Edit: although URE has only 1/10 the volume of IYR, so you may not find any shares to borrow.
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