Comments on Robert Zingale's articles RSS Syndication from SeekingAlpha.com http://seekingalpha.com/author/robert-zingale/articles http://seekingalpha.com/article/162472-why-you-need-tips-in-your-retirement-account?source=feed#comment-686982 686982 Tue, 22 Sep 2009 23:52:57 -0400 http://seekingalpha.com/article/162472-why-you-need-tips-in-your-retirement-account?source=feed#comment-685740 685740 Given all of the reasons that its in the government's interest to > "game the system", when it comes to computing the rate of inflation, > I wouldn't be terribly comfortable pinning all of my inflation "protection" > on a slug of TIPs in my portfolio.]]> Mon, 21 Sep 2009 22:47:37 -0400

On Sep 21 08:24 PM Old Trader wrote:

> Given all of the reasons that its in the government's interest to
> "game the system", when it comes to computing the rate of inflation,
> I wouldn't be terribly comfortable pinning all of my inflation "protection"
> on a slug of TIPs in my portfolio.]]> http://seekingalpha.com/article/162472-why-you-need-tips-in-your-retirement-account?source=feed#comment-685733 685733 You claim that you do not believe the Fed can buy in a bunch of cash > with all the bonds they have? Why not? > > They just go and buy the bonds. It's simple, really. They sold > all the cash into the market. They are independent, why not buy > it all back in? > > The fact there there's more money is a simple problem of scale. > But they have the bonds and the banks have most of this cash in reserves > AT THE FED. > > TIPs are an excellent counter weight to equities in your asset allocation, > but the Fed can adjust the monetary base at will.]]> Mon, 21 Sep 2009 22:37:35 -0400

On Sep 21 07:20 AM VennData wrote:

> You claim that you do not believe the Fed can buy in a bunch of cash
> with all the bonds they have? Why not?
>
> They just go and buy the bonds. It's simple, really. They sold
> all the cash into the market. They are independent, why not buy
> it all back in?
>
> The fact there there's more money is a simple problem of scale.
> But they have the bonds and the banks have most of this cash in reserves
> AT THE FED.
>
> TIPs are an excellent counter weight to equities in your asset allocation,
> but the Fed can adjust the monetary base at will.]]> http://seekingalpha.com/article/162472-why-you-need-tips-in-your-retirement-account?source=feed#comment-685664 685664 Mon, 21 Sep 2009 20:24:06 -0400 http://seekingalpha.com/article/162472-why-you-need-tips-in-your-retirement-account?source=feed#comment-685294 685294 What's your thoughts about the i shares Lehman (http://seekingalpha.com/symbol/tip) > fund as compared to VIPSX.]]> Mon, 21 Sep 2009 16:28:07 -0400
finance.yahoo.com/echa...;range=20040913,200909...

I'd pick based on whether you are using a brokerage acct where it's cheaper to trade TIP, or if you have an acct at Vanguard and can move in/out of VIPSX at no cost. Expense ratios are almost identical.

On Sep 21 09:30 AM mdpath wrote:

> What's your thoughts about the i shares Lehman (seekingalpha.com/symbo...)
> fund as compared to VIPSX.]]> http://seekingalpha.com/article/162472-why-you-need-tips-in-your-retirement-account?source=feed#comment-685286 685286 Mon, 21 Sep 2009 16:18:37 -0400 http://seekingalpha.com/article/162472-why-you-need-tips-in-your-retirement-account?source=feed#comment-684779 684779 Mon, 21 Sep 2009 09:30:44 -0400 http://seekingalpha.com/article/162472-why-you-need-tips-in-your-retirement-account?source=feed#comment-684753 684753 Mon, 21 Sep 2009 08:56:36 -0400 I am of the opinion that effectively the duration of the TIPs fund (and its underlying securities) is even shorter than usually stated because the principal amount of the securities is constantly adjusting with changes in the level of inflation. Unlike MBS, where "option-adjusted" duration is generally measured, I don't think that stated TIPs duration accounts for the constant principal adjustment. (Of course, my view is based on my belief that I can rely on a correlation between mid- to long-term interest rates and inflation rates.)
]]> http://seekingalpha.com/article/162472-why-you-need-tips-in-your-retirement-account?source=feed#comment-684693 684693 Mon, 21 Sep 2009 07:20:57 -0400
They just go and buy the bonds. It's simple, really. They sold all the cash into the market. They are independent, why not buy it all back in?

The fact there there's more money is a simple problem of scale. But they have the bonds and the banks have most of this cash in reserves AT THE FED.

TIPs are an excellent counter weight to equities in your asset allocation, but the Fed can adjust the monetary base at will.]]> http://seekingalpha.com/article/135263-arbitrage-opportunity-in-ultra-etfs?source=feed#comment-492833 492833 Irish, > But in the above example the S&P went up 5%, so if he was net > short wouldn't he have lost money as opposed to returning 1.715%? > > Thank you for your posts, very interesting stuff. > > On May 05 05:54 PM Luck-o-the-Irish wrote:]]> Wed, 06 May 2009 18:12:32 -0400

On May 06 05:55 PM Zac wrote:

> Irish,
> But in the above example the S&P went up 5%, so if he was net
> short wouldn't he have lost money as opposed to returning 1.715%?
>
> Thank you for your posts, very interesting stuff.
>
> On May 05 05:54 PM Luck-o-the-Irish wrote:]]> http://seekingalpha.com/article/135263-arbitrage-opportunity-in-ultra-etfs?source=feed#comment-492805 492805 Do the math...long $50 SPY is long $50, short $100 SSO is like being > short $200 SPY, and being short $50 SDS is like being long $100 SPY, > so you are NET short in this portfolio, which is the real reason > for the decline in 2007 and the rise in 2008 ($50+$100-$200= - $50). > > However, this idea holds merit. We use a similar setup like this > in our hedge fund as part of the strategy; however, there are overlay > and advantages when adding in option arbitrage trades (InterETF spreads) > that we have also pioneered. Obtaining the shares to short is VERY > difficult. Fortunately, we have been able to locate and obtain shares. > If any qualified investor would like to know more, please shoot me > an email.]]> Wed, 06 May 2009 17:55:28 -0400 But in the above example the S&P went up 5%, so if he was net short wouldn't he have lost money as opposed to returning 1.715%?
Thank you for your posts, very interesting stuff.

On May 05 05:54 PM Luck-o-the-Irish wrote:

> Do the math...long $50 SPY is long $50, short $100 SSO is like being
> short $200 SPY, and being short $50 SDS is like being long $100 SPY,
> so you are NET short in this portfolio, which is the real reason
> for the decline in 2007 and the rise in 2008 ($50+$100-$200= - $50).
>
> However, this idea holds merit. We use a similar setup like this
> in our hedge fund as part of the strategy; however, there are overlay
> and advantages when adding in option arbitrage trades (InterETF spreads)
> that we have also pioneered. Obtaining the shares to short is VERY
> difficult. Fortunately, we have been able to locate and obtain shares.
> If any qualified investor would like to know more, please shoot me
> an email.]]> http://seekingalpha.com/article/135263-arbitrage-opportunity-in-ultra-etfs?source=feed#comment-492717 492717 Luck-O-Irish I see what you are saying about the exposure. I was > originally just looking at the asset allocations within the ETF to > construct the portfolio and forgot how the returns on SSO are actually > not completely covered under my article. It would be better to replace > the $100 with only $75. This would still leave the strategy at a > 28.15% return when I wrote the article. > > As for what you are saying about the cash not being free, you may > be completely right. I have not attempted to complete this transaction > yet.]]> Wed, 06 May 2009 17:00:10 -0400

On May 06 01:00 PM Robert Zingale wrote:

> Luck-O-Irish I see what you are saying about the exposure. I was
> originally just looking at the asset allocations within the ETF to
> construct the portfolio and forgot how the returns on SSO are actually
> not completely covered under my article. It would be better to replace
> the $100 with only $75. This would still leave the strategy at a
> 28.15% return when I wrote the article.
>
> As for what you are saying about the cash not being free, you may
> be completely right. I have not attempted to complete this transaction
> yet.]]> http://seekingalpha.com/article/135263-arbitrage-opportunity-in-ultra-etfs?source=feed#comment-492549 492549 Wed, 06 May 2009 15:31:44 -0400 http://seekingalpha.com/article/135263-arbitrage-opportunity-in-ultra-etfs?source=feed#comment-492248 492248 Wed, 06 May 2009 13:00:13 -0400
As for what you are saying about the cash not being free, you may be completely right. I have not attempted to complete this transaction yet.]]> http://seekingalpha.com/article/135263-arbitrage-opportunity-in-ultra-etfs?source=feed#comment-491270 491270 Tue, 05 May 2009 22:27:25 -0400 http://seekingalpha.com/article/135263-arbitrage-opportunity-in-ultra-etfs?source=feed#comment-491158 491158 Give it a rest if you have assets in equity markets you like but > need some comfort then buy some BGZ its that simple.]]> Tue, 05 May 2009 20:03:01 -0400

On May 05 07:08 PM PutneyHillYank wrote:

> Give it a rest if you have assets in equity markets you like but
> need some comfort then buy some BGZ its that simple.]]> http://seekingalpha.com/article/135263-arbitrage-opportunity-in-ultra-etfs?source=feed#comment-491157 491157 I will say that the 2 cent miss by CHK resulted in my opening a long > postion in that one when it was down 12 percent for the day this > afternoon. But trading is easy just fade the crowd when they are > in extreme mode.]]> Tue, 05 May 2009 20:02:46 -0400

On May 05 07:24 PM PutneyHillYank wrote:

> I will say that the 2 cent miss by CHK resulted in my opening a long
> postion in that one when it was down 12 percent for the day this
> afternoon. But trading is easy just fade the crowd when they are
> in extreme mode.]]> http://seekingalpha.com/article/135263-arbitrage-opportunity-in-ultra-etfs?source=feed#comment-491132 491132 Tue, 05 May 2009 19:24:34 -0400 http://seekingalpha.com/article/135263-arbitrage-opportunity-in-ultra-etfs?source=feed#comment-491124 491124 Robert, > Shoot me an email (tcollins@claruspartne... I'd like to talk with > you further if you have any interest. > > -tim]]> Tue, 05 May 2009 19:20:31 -0400

On May 05 06:02 PM Luck-o-the-Irish wrote:

> Robert,
> Shoot me an email (tcollins@claruspartne... I'd like to talk with
> you further if you have any interest.
>
> -tim]]> http://seekingalpha.com/article/135263-arbitrage-opportunity-in-ultra-etfs?source=feed#comment-491109 491109 Tue, 05 May 2009 19:08:38 -0400 http://seekingalpha.com/article/135263-arbitrage-opportunity-in-ultra-etfs?source=feed#comment-491055 491055 Tue, 05 May 2009 18:02:38 -0400 Shoot me an email (tcollins@claruspartne... I'd like to talk with you further if you have any interest.

-tim]]> http://seekingalpha.com/article/135263-arbitrage-opportunity-in-ultra-etfs?source=feed#comment-491053 491053 Tue, 05 May 2009 18:01:12 -0400 http://seekingalpha.com/article/135263-arbitrage-opportunity-in-ultra-etfs?source=feed#comment-491049 491049 How about shorting $150 BGU, shorting $100 BGZ, and buying $50 IWB? > > --joe]]> Tue, 05 May 2009 17:58:27 -0400 You would create a net short position of $100 on the IWB, so you better be bearish.


On May 05 05:21 PM snoopyjc wrote:

> How about shorting $150 BGU, shorting $100 BGZ, and buying $50 IWB?
>
> --joe]]> http://seekingalpha.com/article/135263-arbitrage-opportunity-in-ultra-etfs?source=feed#comment-491044 491044 I sure like the concept. Do you have any suggestions related to possibly > rebalancing the portfolio at different stages of imbalance?]]> Tue, 05 May 2009 17:57:08 -0400

On May 05 11:23 AM Augustus wrote:

> I sure like the concept. Do you have any suggestions related to possibly
> rebalancing the portfolio at different stages of imbalance?]]> http://seekingalpha.com/article/135263-arbitrage-opportunity-in-ultra-etfs?source=feed#comment-491043 491043 Tue, 05 May 2009 17:54:20 -0400 However, this idea holds merit. We use a similar setup like this in our hedge fund as part of the strategy; however, there are overlay and advantages when adding in option arbitrage trades (InterETF spreads) that we have also pioneered. Obtaining the shares to short is VERY difficult. Fortunately, we have been able to locate and obtain shares. If any qualified investor would like to know more, please shoot me an email.]]> http://seekingalpha.com/article/135263-arbitrage-opportunity-in-ultra-etfs?source=feed#comment-491031 491031 Tue, 05 May 2009 17:46:07 -0400 ]]> http://seekingalpha.com/article/84838-oil-gold-arbitrage-opportunity?source=feed#comment-491012 491012 Tue, 05 May 2009 17:33:30 -0400 --joe]]> http://seekingalpha.com/article/135263-arbitrage-opportunity-in-ultra-etfs?source=feed#comment-490999 490999 Tue, 05 May 2009 17:21:34 -0400 --joe]]> http://seekingalpha.com/article/135263-arbitrage-opportunity-in-ultra-etfs?source=feed#comment-490410 490410 Tue, 05 May 2009 12:18:35 -0400
Have you considered doing this using triple-leveredged funds?
--joe]]> http://seekingalpha.com/article/135263-arbitrage-opportunity-in-ultra-etfs?source=feed#comment-490367 490367 Tue, 05 May 2009 12:02:22 -0400