PS,
Good to hear that you know what you are doing and that you are taking a calulated risk and not just convinced 100% about the market move, one way or the other. I am also happy to know that you have just put 10% of your retirement money in Rydex funds. This is because I know people who had been betting on a housing, stocks, dollar decline by buying inverse funds since early 2005 and haven’t done too well. I would always recommend people to hedge some percentage of their money against their major bets, no matter how stupid it seems. Also,don’t fall in love with your opinion or positions and keep updating it as more data comes out like Q3 earnings, etc. This is just my experience of 4 years in trading.
I always chuckle when people think the other inverstors are “clueless or ignornat” about what they are investing in. They either credit their intellect too much or undermine others too much. Small investors don’t move markets one way or other for 3 months and most big institutional investors do their homework.
I don’t think right now is the time to jump into bearish funds for me. I don’t trade until I get strong signals about a trend forming or a wave turning the other way. This is why I am waiting for Q3 earnings and Q4 forecasts before making a move against the markets. Or If I get a CPI report that overshoots expectations or GDP report under 2%, then I am out.
