I fear you may need a head examination. Going into a double inverse fund with a significant portion of your portfolio defies any explantion whatsoever. Anyone who does this is by definition working under the assumption that they can correctly time the market. You are operating as a speculator in a market that is much more difficult to judge than the housing market. You are risking up to 20% of your principal on a monthly basis, going AGAINST a significant long term trend that has existed for decades and shows no sign of going away. That is not a winning bet my friend. Heck, even the speculators who bought homes at the peak in ’04-’05 only had 0-5% of their principle on the line. You are proposing to operate in a capacity that makes these people look like geniuses.
Folks, making 10-15% a year in the markets is not hard. Obtaing a standard deviation unit above this takes special skill and a whole lot of work. Deviating below this is also challenging, but done routinely by folks who for whatever reason just can’t seem to understand how the world works. Pity. Pity.
