I’ve generated over 100% returns over the last year by using a technique I call ‘bubble riding’.
Basically, look for a speculative bubble and get long and liquid on it. When the tide shifts, go short.
I invested long commodities (including oil) a year ago and short the financial and RE sector. Long the commodities/energy bubble, short the housing bubble.
This is easy to do with indexed ETF’s, btw.
There is not much of weakness here other than getting the timing at least somewhat close. There is no surer bet than shorting a collapsing speculative bubble, IMHO. Mutual funds can’t sell short, btw, so you are basically scraping equity out of them.
One can even magnify the returns by using ‘Shannon’s Demon’ to harvest volatility. Bubbles are extremely erratic while collapsing due to short squeezes by the market makers and one can take advantage of the churn with active rebalancing.
