David Fry

Shorting ETFs - Goodbye To The Old Risks

This book, like any other, was written over a period preceding many rule changes and new products. It's hard to anticipate rule changes taking effect and so forth.

User 59428, I'm not telling anyone to short anything from this writing. It's just a tool.

The MOB spread [Munis over Bonds and visa versa] was popular years ago. Tax law changes impact it's use for example and now monoline insurance issues are having an impact. Obviously then being long Treasury bonds and short Munis is profitable. Yet the ability to short any muni ETF is probably impossible for retail.

And, as indicated, the bullish bias indicates stocks and indexes will rise over the long term but it's those pesky bear markets that hurt. Further, with new products from ProShares for example, shorting indexes is becoming not only easier but perhaps much more effective than the use of options whether for hedging or speculation. Preserving your wealth and asset base should always be an important consideration for any investor.