Thursday, October 9, 2008

TSX Bear Fund




Not all mutual funds are dropping like stones these days. This Bear Market fund is bought and sold like a stock without any minimum holding period. It is a convenient way to short the market. It has a leverage factor of times 2 so it moves up nicely when the TSX 60 Index drops. The TSX Composite and TSX 60 are very similar charts.


This is the only investment I hold today for the stock market. I just sold the last of my long position mutual funds (TD Energy) yesterday. I took a $500 loss on this last small long position but expect to make it back later when the market is closer to the bottom of this Bear Market. Until then the rest of my investment money is safely put aside in things like money market funds and bond funds. I'm betting on a significantly deeper Bear Market. Time will tell if this is correct.




12 comments:

David said...

I hope you're kidding. Why don't you just book a flight to Vegas? Buying this fund now is like going long on the NASDAQ in early 2000.

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Canadian Money said...

David

I have held this fund for a few months. I was expecting the big correction, only the timing was in doubt. Purchased near $22. It traded near $35 today.

During the 2000 Bear I also picked up a little profit on the short side buying Puts and selling stocks short...such as Air Canada and Cisco.

CM

David said...

This fund is again back to $22. Is this enough to scare you straight? I'm telling you, this is the tech bubble of 2000 in reverse! When the TSX was trading at 15,000 and the VIX was low, that was the time to buy this ETF, not now.

Canadian Money said...

David

Relax. Be patient and wait for it.

Come back and comment in 6 months time.

CM

Patrick said...

Ya, chill out David ;-) I'm betting this is going lower as well.

Thx for posting this. I didn't think their existed a TSX short etf (I couldn't find a damn thing on google until I stumbled across this site).

Patrick said...

David: "I'm telling you, this is the tech bubble of 2000 in reverse!"

Do you know anything about economics?
Have you heard of the theory of the business cycle?

Check out www.Mises.org for economics.

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