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If you have "disposable" income

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posted on Jan, 31 2011 @ 04:14 PM
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If you have disposable income and are contemplating investing in the stock market because it looks like its going gangbusters, explore this idea with your financial planner... S&P500 surpasses 1300, invest 25% of available assets into an inversely related instrument such as SDS. SDS is the ticker symbol, essentially "shorting" the companies inside the index. Lets say S&P 500 reaches 1350 or so...lay down another 25% into sds to increase your position and lower your cost basis. May just be S&P500 surpasses the 1400 mark. Invest the final 50% of your "disposable" income into sds, then be patient. When the stock market "crashes" again, your investment will increase in value. Disclaimer: you may find yourself literally "cheering " the crash on. Watching in pure "glee" as you you witness chaos. Important though that you "EXPLORE" the idea with your financial planner, and find out for sure if you handle the "risk". There is also inverse relationship instruments for the dow 30, dxd is the ticker and the nasdaq, it would be qid. That said, there are many inversely related instruments out there so, check w/your planner. This is my personal strategy right now and will be implementing it beginning the day the S&P closes above 1300. But i must tell you, be prepared to be nimble and you have to "sell" these instruments to actually enjoy a "capital gain". Work closely with your planner as that is his primary feduciary duty...to help you.




posted on Jan, 31 2011 @ 04:23 PM
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Anytime you are shorting a stock you need to be aware that unlike going long where the worst you can lose is your investment, when you short a stock you can lose/owe an infinite amount of money.



posted on Jan, 31 2011 @ 04:27 PM
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reply to post by wildshoetwt
 


With these particular symbols, they are inversly related and your actually going "long", based on short selling the companies found within them. g.a.g. P.s. I should have added a little more to my post...I am sorry



posted on Jan, 31 2011 @ 04:29 PM
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Buy food/water with it. That will be much more valuable than anything including silver/gold when the dollar collapses. Can't eat gold.



posted on Jan, 31 2011 @ 04:37 PM
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reply to post by HoldTheBeans
 


Thankyou for the reply and you are not wrong. I was simply trying to engage in dialogue with people who think that the stock market is going so good that they may be thinking about entering a new position in the stock market. I know that my assertions here may not seem prudent, but thats why I say "disposable" and itterate, "with your financial planner".
edit on 31-1-2011 by G.A.G. because: spelling



posted on Jan, 31 2011 @ 10:09 PM
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Probably the worst advice I have ever read in my short history with ATS.

Even if I didn't believe the equity markets are going nowhere but up, but adding to your losses is just asking to get kicked in the face.

I am sure many had that idea at SP 900-1000 as well. You would be broke and homeless by now.



posted on Jan, 31 2011 @ 10:17 PM
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This is a much better plan. Not one time in history has anyone who has DCA'd their way into the market (long) over their lifetime been a loser. In fact, depending on your investing lifetime you have came up many, many multiples higher than you started.

So if you enjoy going with strong odds (100%), this is probably a much better idea.

Don't fight the fed.



posted on Feb, 1 2011 @ 07:18 AM
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Please explain how you are actually going long by buying these?



posted on Feb, 1 2011 @ 08:53 AM
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reply to post by samkent
 
First, I am suggesting that you discuss this with your financial planner(as stated above), he will do a much better job at the "explaining" part. Also, there are many other inversely related instruments to choose from, I simply used these for examples. I never have, nor will I ever "short" any financial market. Perhaps others will find this thread a joke, but times like these, separate the wolves from the sheep.



posted on Feb, 1 2011 @ 01:39 PM
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This thread is closed for staff review. It should also be noted that any investment advice or hints should always be taken with a grain of salt and to do your own research before committing to an investment.



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