Financial Samurai - Forums

General Investing => Stocks And Index Funds => Topic started by: Alex the stoic on October 31, 2018, 03:22:34 AM

Title: Anyone else shorting the S&P500?
Post by: Alex the stoic on October 31, 2018, 03:22:34 AM
After all my NASDAQ stocks getting stopped out i decided to shorting the S&P 500 with an ETF. Anyone else had the same idea?
Title: Re: Anyone else shorting the S&P500?
Post by: nycrite on October 31, 2018, 06:12:37 AM
I'm not changing a thing! It's a busy season of life, which means lazy dollar cost averaging is my way of "reacting" to the market correction. I'll receive some discounts on S&P index funds until the market recovers.

I prefer to keep buying in volatile times. It's more likely to be useful long term. I can't think of any long term value to shorting the S&P though I suppose with good timing, it could work in the short and medium term. That sounds like timing the market though...
Title: Re: Anyone else shorting the S&P500?
Post by: polama on October 31, 2018, 06:38:44 AM
I put a little fun money short during the ride down last week. Closed that out though. If it breaks 2650 with conviction I'll put another small short bet in, but I'm not expecting that to happen.

While it was falling, it looked like it was going to keep falling. Now that it's bounced off some support, I'm reverting to the default assumption that markets usually move up.
Title: Re: Anyone else shorting the S&P500?
Post by: Sam on October 31, 2018, 07:31:26 AM
I did a lot more shorting when I was in my 20s and early 30s to try and profit and hedge. Sometimes it worked, sometimes it didn't. It's so easy with all the short ETFs out there.

However, as I grew older, I realized I was WASTING MY TIME trying to time the market when doing my taxes.

So instead of shorting, I just either built more cash, or built a larger bond position. It's been a much smoother, profitably, and easier ride as a result.
Title: Re: Anyone else shorting the S&P500?
Post by: hyperobjeckt on October 31, 2018, 02:59:25 PM
So you are just holding a short ETF? Aren't short ETFs usually designed to only be held for like a day as part of a strategy?

I mean I'm not gonna judge, would like to know more about what this ETF is though & why you wouldn't just use options
Title: Re: Anyone else shorting the S&P500?
Post by: Cheezus on October 31, 2018, 03:36:04 PM
Quote from: Sam on October 31, 2018, 07:31:26 AM
I did a lot more shorting when I was in my 20s and early 30s to try and profit and hedge. Sometimes it worked, sometimes it didn't. It's so easy with all the short ETFs out there.

However, as I grew older, I realized I was WASTING MY TIME trying to time the market when doing my taxes.

So instead of shorting, I just either built more cash, or built a larger bond position. It's been a much smoother, profitably, and easier ride as a result.

How are you purchasing bonds?  Specific funds?  Curious.