Wednesday, October 15, 2008

Investment Disclosure 2

While my thesis is the same, I have changed the vehicle. I found a more efficient way to invest in the index I mentioned in yesterday's post. Rather than short this index fund, I have found a fund that does this for me. Today, I have exited my SSO short and instead purchased UltraShort S&P500 ProShares (SDS).

This is the same fund I mentioned earlier (SSO) but this fund has already shorted the S&P 500 index for me. In other words, it is the same basket of stocks, but if the S&P 500 goes down, the SDS will go up. Again, this is the same thing as what I was doing before (shorting the SSO), the only difference is that now I don't need to use my own margin (and don't need to worry about my brokerage issuing margin calls) and I don't need to pay my brokerage interest. The UltraShort funds do this more efficiently.

Congratulations to those of you who had shorted SSO yesterday or who had purchased the SDS. You are up 20% since then.

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