Pro Shares Ultra Short Mid Cap 400 ETF

MZZ-N

(A Top Pick April 29/08. Up 31%.) A double short on mid-cap stocks in the US. Problem with double shorts or double longs is that you have to rebalance every day giving a loss over time so it is great to trade but not a long-term Hold.

A way to protect the portfolio to have shorts. mid-caps would get hurt more than a larger company if the bear market continues.

Shorting on mid-caps> Gives you twice as much short as the market drops. Likes mid-caps because they have more difficulty in financing themselves.

Q: Jean-Francois Tardiff had this ETF Short as a Top Pick because of his views on the US economy. What do you think? A: He doesn't see it as a risk/reward. In 2002, he bought this index for some US clients and he still holds it. It is currently around 846 (?) and if it ever shot up to around 1100 (?) he would agree.

ETF double short on mid-cap US stocks. Doesn't think the stock market will do well for the next 2 or 3 years. Thinks mid caps will suffer more because it will be tougher for them to get financing, margin issues and investors will stay away from smaller caps.