Macro Tsimmis

intelligently hedged investment

Archive for June, 2011

BUY ProShares Short S&P 500 (SH)

Posted by intelledgement on Thu, 16 Jun 11

We expect the exigencies of the election cycle in the USA and the need to limit damage to the banks in Europe will drive another round of can-kicking-down-the-road—raising the debt limit and “rescuing” Greece, respectively—that will temporarily buoy up the markets. However, the options for wallpapering over the cracks in the structure of the system are fewer and weaker than ever, and it is inevitable that investors will eventually cotton on to the seriousness of our situation…and possible that that may happen sooner rather than later. Thus it is prudent to go short here as a risk management tool to limit the potential damage if things fall apart sooner than we expect.

We are going with the Proshares Short S&P 500 (SH) ETF, which seeks daily investment results, before fees and expenses, that correspond to the inverse (opposite) of the daily performance of the S&P500® Index.”

Previous SH-related posts:

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