Stockchase Opinions

Larry Berman CFA, CMT, CTA ProSh Short S&P 500 E.T.F. SH-N BUY Dec 17, 2012

Single bear ETF for shorting US market. If US markets fall, so will Canadian dollar so you want to play this in US$.

$33.950

Stock price when the opinion was issued

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BUY

Short S&P 500? Fx charges are a big determinant. No hedge.

WATCH

Would go up 1:1 if US markets decline.

COMMENT

US investments in an RRSP that have had some good gains. Would this be a good way to protect the gains? A 1 for 1 hedge in your portfolio makes a lot of sense. You have to look at your portfolio though, and decide how much you want hedged. If you hedge every $1, and if the market goes up or down, you are basically dead flat. You don’t really want to go there. 80% of the time, the market goes up, so maybe hedge 20% of your portfolio.

COMMENT
Ways to hedge against downturns.