Originally Posted by aerospace
You own a fund and make money if the market rises.
You short the market to make money when it goes down.
Isn't that like betting on red and black and making nothing in the long run.
Double zero is the fees you pay to do this.
Not a winning strategy IMHO.
That would be true if SPY and SH were purchased together. I bought SPY a while ago when the market was in the toliet I picked it up at about $135 per share it's at $150.
I only picked up SH to short the market because it got to a record high. So when I got SH the SPY was at about $149 and I think it's ready to drop. I'm looking at an exit on SPY. Then hold my short postitions until I make a nice gain when the market drops. Hedging your position is done a lot in the opinions world you do some puts and calls in order to hedge your position and limit your losses. No worries my sale of SPY will cover all my fees.
I'm worried about getting caught in a short squeeze on SH. But right now the stock isn't moving enough up or down for that to be a real worry. In fact the investors seem nervous like they are waiting for the other shoe to drop. See how sharp the gain is I think it will drop back down to at least $140. My guess I could be wrong it's happened before.