wixeywaxy

Why I Think the NASDAQ May Be in Trouble

There is something that just doesn't add up about these Funds that short the market. Supposedly the advantage is that you can only lose your investment. That's true but it's not the whole story. It the market goes up significantly in contradiction to all the indicators currently supporting a negative outlook the losses in these funds will be reflected in a value of less than their NAV and my bet is by a much larger % than we usually see on the standard variety of Funds because the managers must buy back shares when pressed and at the same time generate cash to redeem the funds shares from patrons exiting. This scenario is a sure thing to eventually occur even if their is some intermediate gains and maybe even more certain if there are early gains sucking in more unwitting investors. Short selling is a losing proposition most of the time for the typical investor and these funds haven't got a formula that will change that. Vic