>>As to shorting oil, why throw good money after bad?
That’s a fair question. I was being more dramtic than serious in my follow-up post “I’m going to double-down my oil bets”
I think there are better bets. God only knows how high oil will climb before we see a significant correction. Maybe $200/bbl.
I’ve been watching the Shanghai index again. It has fallen from 6,100 down to 2750, and has now recovered a tiny bit. Back in May ’05 it was at 1,000 and I was in China visiting in laws and begging my wife (who is Chinese) to help me find a broker and open an account in her name so I could buy the Shanghai index. We visited a few brokers, but in the end she refused because her family felt the Chinese stock market was too risky. Well they are right about that, but I was smart enough to see that 1,000 had to be near the bottom. After that the index went up 6X in 2 1/2 years and I didn’t make a friggin’ dime on that.
So now with that Index crashing again, my second chance may be coming up. However, I want the Shanghai index to go lower than 2,700, certainly below 2,000 before I start buying.
I’ve heard there are now some funds or ETF’s that westerners can buy that have exposure to the Shanghai exchange, but I’m not sure of the specifics.
