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Strategies & Market Trends : Value Investing -- Ignore unavailable to you. Want to Upgrade?

To: Carl Worth who wrote (20522)	1/30/2005 9:33:49 AM
From: MCsweet	Respond to of 78661

Leveraged RYDEX funds, The problem with these leveraged rydex funds (or anything at a fixed leverage percentage as opposed to a fixed leverage amount) is that the sell low and buy high in order to maintain their fixed leverage percentage. They also have extremely high expenses. Over long periods of time, this will underperform. For that reason, IMO they are best for short-term market timing. I'd rather just short say a Russell or Nasdaq-type ETF if I wanted to protect my portfolio, because I don't know how long I'd need the protection. If you can short stock futures, that's even better because you don't tie up so much of your money and/or need to worry about getting a borrow. Or Carl Worth's suggestion of going to cash is good, unless you like your stocks currently but want protection from a big market move. MC