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Roger Nusbaum

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  • The Case Against Leveraged ETFs [View article]
    amounts to 5% of the small portion not in t-bills?
    May 17 07:14 PM | Likes Like |Link to Comment
  • The Case Against Leveraged ETFs [View article]
    which equates to the number days left until maturity of the current 91 day t-bill I believe? So are we talking about a small drag on a small slice of the fund?

    The mis conception about long-term versus daily would seem to be much more important. Just my take.
    May 17 11:55 AM | Likes Like |Link to Comment
  • The Case Against Leveraged ETFs [View article]
    The mis-conception that these funds capture twice the index over the long term is huge huge huge, I agree that a lot people miss that.

    I use the double short SPX, ticker SDS, in a small amount as an insurance policy and I concede the long term flaws you cite that may leave investors disappointed with results.

    There are a couple of things in your article that I don't quite follow. The 2x funds are mostly cash invested in T-bills earning around 5%, they don't borrow anything, as I understand it they are something like 90% cash. Yes there is perpetual tweaking to maintain the right mix.

    I have used SDS for quite a while and last December clients got a fairly healthy dividend on the t-bills.

    I do not disagree with you on the flaws but as a small insurance policy is was a big help on 2/27.
    May 17 10:55 AM | 1 Like Like |Link to Comment
  • China: It's a Mania, Not a Bubble [View article]
    wonderful for you that you have all the answers to everything. I don't recall forcing you to reading anything I have ever written...feel free to hit the bricks the next time SA posts anything from me.
    May 16 10:13 PM | Likes Like |Link to Comment
  • Foreign Investing: Getting The Country Right [View article]
    Frank, our firm recently bought more sophisticated software to measure performance numbers and also capture things like R*2, Sharpe Ratio and even Treynor.

    Previously I had no idea what my numbers where for these measures. The numbers surprised me as to how good they were for risk adjusted returns--I don't want to be public with these number because I don;t want to be accused of being too salesy. i touched on this in a video post dated May 6.

    The important thing is that during big downturns broad based products won't behave much differently than the US, IMO. Some individual countries will behave differently and I plan to try to capture whenever a down turn happens.
    May 16 09:50 PM | Likes Like |Link to Comment
  • A Slew of New ETFs, Including a Different Take on Water [View article]
    that will be the question. They are supposed to offer qualitative screens they hope will isolate the better companies within each segment with the intention of beating the true index funds with no qualitative screening.

    Obviously it is unknowable yet if these will outperform.
    May 14 09:34 AM | Likes Like |Link to Comment
  • A Slew of New ETFs, Including a Different Take on Water [View article]
    the Claymore product will mimic the S&P Global Water index.
    May 14 09:31 AM | Likes Like |Link to Comment
  • Watch China -- It Will Impact Us [View article]
    para 2 i am paraphrasing someone else and saying i disagree. the context of para 4 is that for a while now I have felt there would be painful declines over a ten year period as China's role in the world economic order continues to become more important.
    May 12 09:17 PM | Likes Like |Link to Comment
  • A Slew of New ETFs, Including a Different Take on Water [View article]
    I put a correction to this post on my blog. The Claymore product will have domestic exposure but only 28%-ish.
    May 11 12:47 PM | Likes Like |Link to Comment
  • Enjoy Your (Market) Ride, Please Exit to the Rear [View article]
    I guess it depends on time horizon for the question. Generally I have been expecting slighlty below average returns for the next few years. While it makes sense that volatility will increase I haven't been focused on that.

    I am more focused on increasing foreign over the next few years from 35% to maybe 50%. Same idea as you are putting forth but i think the flow will go overseas, or continue to attract more assets.
    May 9 03:21 PM | 1 Like Like |Link to Comment
  • Sell in May, Buy Back in ...?? [View article]
    your example is a little shorter time frame than most people think of but it very correct.
    May 5 03:27 PM | Likes Like |Link to Comment
  • ETF Options as Proxies -- Easier Said Than Done [View article]
    the reader in question is focused on 40% in cash which does not quite work out but you are right it may not be bad. The idea behind the post is that this is not simple.
    May 4 05:04 PM | Likes Like |Link to Comment
  • Story Stocks - Define Your Trigger Point [View article]
    i think you are speaking exactly to my point. know the drawbacks and what you are in for, just as you say
    May 4 05:00 PM | Likes Like |Link to Comment
  • Roger Nusbaum on Commodities: Crucial to Know How the Market Operates [View article]
    valid criticisms. are you saying that by owning one broad based commodity index, you don't need to look under the hood and know what is going on? I feel like I would. The only commodity I own for clients is gold for the reasons stated at a very small weight as also stated.

    You like broad based, I don't, so what? I do what I think is best and what I am most comfortable with as I am sure you do. You should feel free to put up a blog and express your views. Readers can learn from differing views to come up with their own thoughts about what is best for them.
    Apr 26 11:48 AM | 1 Like Like |Link to Comment
  • Hedging a Weakening Dollar With Currency ETFs [View article]
    I don't think so but I believe the DirexionFunds may have leveraged OEFs.
    Apr 22 04:02 PM | 1 Like Like |Link to Comment