written by reader Shorting the market

by prorsum | August 24, 2017 10:22 am

The Bear is supposedly coming soon. Is ProShares Short (NYSE-QQQ) a good way to protect your portfolio?

Source URL: https://sgumdev.stockgumshoe.com/2017/08/microblog-shorting-the-market/


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Travis Johnson, Stock Gumshoe
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It will go down if the market goes down, but the cost of protection is pretty high — and predictions of the market falling are rarely particularly accurate, if everyone’s expecting a drop it’s harder for the drop to happen.

I’ve written some about hedging and protection in the past, and generally have found it too expensive for the value it provides — but every person has different needs when it comes to hedging and asset protection. The last time I looked at this in depth was way back in December, when I expected the VIX to be substantially higher in six months — but, thankfully, I didn’t bet on that because the cost of the bet was too high for the possible benefit.

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