PROSHARES TR (SKK)

bridgeboy0 (31.80) Submitted: 10/05/07 2:50 PM : Start Price: $58.53 SKK Score: -113.56

This is a 'cheesy' (imho) tactic that I got from another Caps player. Over the long haul stocks go up. So shorting all of the ultra-short or short ETFs will get you a return of about 2 or 3 points in Caps for each point that the ETF goes down (assuming the SPY is going up a corresponding amount, which will be true for most of the short/ultra-short ETFs).
If stocks go up then the short/ultra-short ETF will be negative but the SPY will be positive. The management fee deducting further from the price of the ETF just adds to the downside.
This strategy is incredibly sound but I don't really think it is what Motley Fool had in mind when they started Caps.
Stocks over the long term will be going up (as will the S&P 500), while this ETF must go down because it inversely tracks Small-cap stocks.
I'm glad to see that Motley Fool has changed it so that those who are shorting the short/ultrashort ETFs do not get credit for 'skeptic' charms.
This is a sound long-term strategy that I recommend to anyone who thinks the market is going up. If anyone sees any short or ultra-short ETFs or other vehicles available that I've not yet added to my portfolio please let me know!

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