John HoodBETAPRO SP TSX 60 DAILY INVERSE ETFHIX.TOTOP PICKOct 06, 2016

HIX is an inverse play on the TSX 60 similar to HDGE or RWM. It is a single inverse, so there is only a tiny element of future market exposure. There is no leverage involved in HIX.

(A Top Pick Oct 6/16. Down 12%.) This hasn’t worked out. It was put on simply as a hedge for the next 3 weeks until the election.

HIX-T vs. HIU-T. Inverse exposure to their respective indexes. They are a way to hedge your overall exposure. He loves the idea of using these.

He is looking to add shorts to the US market. He uses the RWM-N. When the markets fall, small caps underperform on the way down. You need a currency hedge.

Inverse ETFs for when the market turns bearish. We don’t know which market is going to turn. We know that it is very difficult to forecast the market. Forecasters are never wrong, they are just early. This would be the one to buy. It hasn’t done a lot because the market has been so strong, but markets don’t go up in a straight line. You have to look at a TSX chart, look at some support resistance, throw on some 50 day, 200 day and 20 day moving averages and try to pick a spot where you are comfortable buying it. Not a long-term hold.

Whenever you buy any inverse, you have to have the underlying stock falling to make any money. A single inverse doesn’t have the leveraged problem that a double instrument has. His feeling is that any inverse is a short term play. He is very hesitant to use these kinds of things.

Likes the single inverse ETFs but stays clear of the doubles on commodities. There is room in every portfolio for a hedge. HIX-T is a good way to play. The doubles are a 2-4 day hold only.