Anti-ultrashort rant update
I ranted in an article here against buying ultrashort ETF's to play the coming economic hardship, stating that there will be severe inflation accompanying that economic stress, and demonstrating how real returns can be severely negative for both the S&P 500 and the ultrashorts of the S&P 500 simultaneously.
However, I thought of a caveat: you can buy ultrashort ETF's and lucratively write covered calls on 60-70% of them. (Yes, I just pulled those numbers out of my wazoo.) This should provide good income to offset inflation, and still allow you to profit in the event of a notional market crash. However, if inflation is around 20-30% and it drives market prices upward at about 10-15%, you will be in a world of hurt. Still, I don't see how, in an inflationary environment such as this, it would be better to buy SDS without writing calls than to buy it and write calls.