VelocityShares Inverse VIX STerm (XIV)

An inverse ETF such as XIV-N might be leveraged -- and he will never touch leveraged funds. XIV-N was actually liquidated as investors lost 90% of their investment. He thinks HXT-T is non-leveraged. You can be on the right side of the market, yet still lose money on a leveraged fund. The leveraged funds are really for day traders only.

(A Top Pick Aug 22/11. Up 57.99%.) This is essentially shorting the VIX. When you have the big spikes in volatility, this is a good thing to invest in because volatility does not last forever but goes in cycles. Wouldn't be investing in it right now.

A volatility Exchange Traded Note. He is counting on the markets settling down. The volatility is lower this is going to bounce back up to $10. The markets don't have to recover to do well. Speculative.