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Strategies & Market Trends : Mish's Global Economic Trend Analysis -- Ignore unavailable to you. Want to Upgrade?

To: forceOfHabit who wrote (91315)	12/9/2008 1:59:25 AM
From: mishedlo	2 Recommendations Read Replies (2) \| Respond to of 116555

You are also ignoring (or are ignorant of) borrow fees. You are also ignoring bid/ask spread. If you want to make an issue over bid ask spreads you are being an ass. Everyone here understands bid ask spreads. There are bid ask spreads on the stock or the ETF. When you short you get a credit and that credit pays interest, I ignored that too. And I also ignored but should not have the fact that fees on those double inverse funds are huge. And I ignored dividends too because I assumed everyone was aware that when you short stocks you pay the dividend. I did not want to dive into all these details when someone really wanted to know why a double inverse fund was performing so poorly, and the answer was slippage. Mish