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- Is the Structural Bear Market Nearing Its End? [view article]
- How Private Equity Funds Manage Such Big Returns [view article]
- Bullish Dollar Rally - Fast Money Recap (8/15/08) [view article]
- Stock Markets Nearing Important Bottom [view article]
- The Case Against Leveraged ETFs [view article]
- Double Longs: An Equity Idea in a 6% World? [view article]
- Options Trader: Wednesday Outlook [view article]
- ProShares UltraShort and UltraLong ETFs [view article]
- ProShares ETFs: Why Volume Trading Makes a Difference [view article]
- ProShares ETFs: Strongest Technical Buy and Sell Signals [view article]
- Brian Orol Uses Inverse ETFs to Smooth Returns [view article]
- Building a Long-Volatility ETF Portfolio [view article]
loading ...Recent SSO Articles
- How Private Equity Funds Manage Such Big Returns
- Bullish Dollar Rally - Fast Money Recap (8/15/08)
- Options Trader: Wednesday Outlook
- Double Longs: An Equity Idea in a 6% World?
- Is the Structural Bear Market Nearing Its End?
- Stock Markets Nearing Important Bottom
- ProShares UltraShort and UltraLong ETFs
- ProShares ETFs: Why Volume Trading Makes a Difference
- ProShares ETFs: Strongest Technical Buy and Sell Signals
- Brian Orol Uses Inverse ETFs to Smooth Returns
- Full List of Articles »
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Is the Structural Bear Market Nearing Its End? [view article]
SKF on short squeeze friday ReplyHow Private Equity Funds Manage Such Big Returns [view article]
An alternative is to remortgage your house and buy Altria, I saw some guy on the internet that has done that quite successfully. ReplyHow Private Equity Funds Manage Such Big Returns [view article]
klbjcb,You're correct regarding the double inverse etfs, but they still have value used as hedges for a portfolio. Reply
Supkis
How Private Equity Funds Manage Such Big Returns [view article]
I have seen first hand how leverage investors fare: they always end up going out on a limb. As they get richer playing this game, they play it more and more and leverage themselves right into the grave when the bears invariably show up.Then I see the sheriff at my neighbor's front doors. One mansion in our neighborhood changes hands like clockwork every recession. Reply
How Private Equity Funds Manage Such Big Returns [view article]
I enjoyed this alot - very humorous. BUT the"double floater ETF's", as you call them, only
work on a daily basis at 2x the market. Over
time it is much less. (Just in case anyone takes
you seriously). KEEP WRITING!! Reply
How Private Equity Funds Manage Such Big Returns [view article]
Will, you figured it out, but is it worth knowing?Of course this is not a market for playing the bigger fool. What was your point? or did you have one? Nitwit! Reply
Bullish Dollar Rally - Fast Money Recap (8/15/08) [view article]
Something has to give eventually. If in the good times, the budget deficit needs a $10.6 E12 cap, how much do you think the recession will require? Think about the Bull in dollars: We just bailed out a bottomless pit (GSE's), Housing is in a death-spiral, not a bottom (use the part of the brain that still can do critical thinking, not the constant part) and the whole banking system is being propped up by playing cards. The dollar is on life support and people are bullish? Based on what? The rest of the world knows our debt will never be paid unless they lend us the money to pay them. I think they're on to us... ReplyBullish Dollar Rally - Fast Money Recap (8/15/08) [view article]
Old Rob Ivanoff used to say at wallastoninvestments.c.../"You work on Wall Street, you don't invest there." Financial are going another leg down. Reply
Bullish Dollar Rally - Fast Money Recap (8/15/08) [view article]
I think you've got it Billy: Simple usually has th best chance of success.Politicians have no real interest in alternatives--"Wh... spend a lot of money on something that won't come to fruition while I'm in office and can be reelected on my credits for it??"
The more complicated the formula gets as every divergent interest puts their variables in and deducts what they don't like the less chance it has of working at all.
Simple things like T. Boons windmill freeing up X+Methane from a power plant to run your car and =X- imported oil is a perfect example.
Drilling is a temporary return to past policy and at best will be the buffer we need to gain time for a transition to permanent alternatives.
The last go around (1970's) we squandered the time --there will be no "easy" next time. We can do what has to be done or we can line up behind fools like Pelosi and suffer the consequences. Reply
Bullish Dollar Rally - Fast Money Recap (8/15/08) [view article]
I think the G8 group which met a month or so ago decided to all support the dollar and they are all doing it. The Europeans wanted a weaked Eurodollar for trade reasons and they got it. I think when the Chinese get past the Olympics and get vehicles on the road and factories running again and we start putting oil in the strategic reserve that oil will again go higher. It is sad to hear people say to not drill in Alaska and offshore USA. I know it is not an immediate help for oil prices, but it is sure stupid not to plan ahead for years down the road. It's to drill in California, Oklahoma, Texas, Louisiana, Mississipi etc, but NOT in Alaska, Be real. Most of you greenies have never even been there !!! ReplyStock Markets Nearing Important Bottom [view article]
Good work-but K, this will be a short rally. Gale is close to right on. Banks won't even lend to other banks. In fact they say not to buy (our stock)for at least 18 months-they are not buying back their own shares yet! Why? ReplyThe Case Against Leveraged ETFs [view article]
Excelent article! By far the best that I've seen on the subject.I'm in the same position as Benjamin Washington above and have been invested in these type products in my IRAs for about five years on the same theory that he stated. Can anyone come up with a counter argument?
Note that IRAs (1) have tax deferred status, so capital gains distributions don't matter (2) prohibit margin borrowing and most options strategies.
As someone who has a very long time horizon for my money, it seems to me that a beta of 1.0 that I would get from an index fund is simply too conservative, but IRA rules prohibit me from increasing my systemic risk to what I consider to be an appropriate level. Reply
Double Longs: An Equity Idea in a 6% World? [view article]
etfwanderer,UYG holds some of the stocks directly, but uses swap agreements with a counterparty to get additional exposure to the stocks in its portfolio. These are similar to the Single Stock Futures traded on the Chicago One Exchange, but unlike SSFs, swaps can be customized for the specific size and expiration (or no expiration at all), and can be on a basket of stocks rather than a single issue. Swaps do not trade on any exchange, and are often used to get around margin and other limitations. In this case, UYG uses these derivatives correctly to achieve a 2:1 leverage which would otherwise require less efficient instruments.
Just like with futures, however, there is no double dividend or free T-Bill interest, as those rates are factored into the price of the swap by the counterparty. This counterparty usually owns the underlying portfolio as a hedge, and has to finance its own capital. The "price" of the swap covers this financing cost.
Reply
Double Longs: An Equity Idea in a 6% World? [view article]
roger,you mentioned that the double long products essentially hold two futures plus t-bills. what about products where the futures are illiquid or do not exist? for instance, UYG is double long financial stocks, but I am not sure if any future exist on financial stocks. how is the product contructed in this case?
thanks Reply
Is the Structural Bear Market Nearing Its End? [view article]
John Mauldin has a great line in his commentary fromthe other day: "For the record, there's no record in history of a bull market starting at a P/E of 18."Opportunistic with tight stops, and buying it cheap or staying in cash is the right thing to do right now.
Reply