Tuesday, August 24, 2010

SOS ETFs


Exchange Traded Fund - ETF


It was the rich man game, now, the medium income can also participate in the following type of investments, LONG or SHORT:



  1. By Country

  2. By Industry

  3. By Asset class

  4. By Currency

  5. Interest

  6. Bonds

You name it, they got it. Some say ETF is for professionals only, I beg to differ. In any kind of products, the first thing to do is understand the product, what its the pros and cons.


Just a simple example, if we are convince that US stock market will collapse in one or two year from now, you can bet by SHORTING


S&P 500, DJIA, Russell 2000, with leverage, etc. Some of which are like TWA, TWM, SH, DOG, etc.


However, if we read it wrongly and it did not happen in the next two years, you get BURN if the market goes up instead, if it is flat, no movement, if it goes down as predicted, WALLA.


So it is a matter of PROBABILITY. Most PhD will give you complicated formulas and confuse us. For layman or businessman, it is pretty straight forward, just weigh the chances of going DOWN (reasons) and chances of going up (reasons).


MyView


The critical part is to take action. Reading it well or not well is inadequate. Next, shall we consider SHORTING property in Australia. The probability is pretty good, the price income ratios for major cities exceeded 7times. Of course, one also have to consider household income against loan oustanding.









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