Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Strategies & Market Trends : Dividend investing for retirement -- Ignore unavailable to you. Want to Upgrade?

To: upanddown who wrote (3949)	3/1/2010 11:34:25 AM
From: Bread Upon The Water	Respond to of 34328

"I really am looking for defensive plays to ride out the summer and fall, maybe TIPS or investment-grade bonds if treasury spreads widen. I really don't want inverse-market stuff since I see more of a slow grinding down rather than a big dive. Another problem with the inverse stuff is that they consistently miss their targets and a lot of them appear to be little more than scams designed to enrich the operators." It is true that the inverse's are not perfectly correlated to the down market---especially the double and triple inverse's--and they do have high fees (2+ percent), but they do the job in a crash. RFN double inverse, now around 5.5 was at 90 last March and SKF double inverse, now around 23 was at 268. They are like insurance policies. One hopes one doesn't have to collect, but let's one sleep at night. With the amount of debt the government is taking on a crash could be in the works for treasuries--in which case TBT could bail out treasurey investers.