Never happen. The powers that be will not allow it.

It makes much more sense to short sectors of the market that will feel the pain from the collapsing housing bubble the most. This would be the financials, real estate and consumer services.

Never happen. The powers that be will not allow it.

It makes much more sense to short sectors of the market that will feel the pain from the collapsing housing bubble the most. This would be the financials, real estate and consumer services.

At this point unless you are already loaded up shorting say XLF isn’t a great idea. I’d say shorting individual financials makes more sense. LEH and C are good candidates. To me C is a short to zero, or at least single digits. The easy money shorting XLF was made last year.

Rather than waiting for a cataclysmic event, short or buy puts into the Fed interest rate induced rallies then cover on the way down.

When the Fed has cut to one percent, thats your pre-cataclysm warning. The next shock should be quite severe.

Josh

At this point unless you are already loaded up shorting say XLF isn’t a great idea. I’d say shorting individual financials makes more sense. LEH and C are good candidates. To me C is a short to zero, or at least single digits. The easy money shorting XLF was made last year.

Rather than waiting for a cataclysmic event, short or buy puts into the Fed interest rate induced rallies then cover on the way down.

When the Fed has cut to one percent, thats your pre-cataclysm warning. The next shock should be quite severe.

Josh

At this point unless you are already loaded up shorting say XLF isn’t a great idea. I’d say shorting individual financials makes more sense. LEH and C are good candidates. To me C is a short to zero, or at least single digits. The easy money shorting XLF was made last year.

Rather than waiting for a cataclysmic event, short or buy puts into the Fed interest rate induced rallies then cover on the way down.

When the Fed has cut to one percent, thats your pre-cataclysm warning. The next shock should be quite severe.

Josh

Its one thing to short the market because you believe that the economic fundamentals are just plain negative or wrong… but its another to hope for a “cataclysmic” event similar to the attack on the twin towers, in order to turn a hefty profit. I don’t think I could invest in a bet where I make tons of money on the hopes that innocent people suffer. With an investment strategy like yours, you would be having a bad day if good things keep happening, and that creates a strange and perverse conflict of interest….

…what would you rather happen, A – another terrorist attack killing thousands, but you make a ton of money, or B – good things happen and you make modest gains because you invested accordingly. … just food for thought

Its one thing to short the market because you believe that the economic fundamentals are just plain negative or wrong… but its another to hope for a “cataclysmic” event similar to the attack on the twin towers, in order to turn a hefty profit. I don’t think I could invest in a bet where I make tons of money on the hopes that innocent people suffer. With an investment strategy like yours, you would be having a bad day if good things keep happening, and that creates a strange and perverse conflict of interest….

…what would you rather happen, A – another terrorist attack killing thousands, but you make a ton of money, or B – good things happen and you make modest gains because you invested accordingly. … just food for thought