Be sure to check out the development of my free eBook, "Stock Investing Basics."

Want to learn how to sell anything online? Here's how.

Betting Against the Market? Here's an Easy Way: RSW

Posted by billspaced | 5:58 AM | 0 comments »

I'm not suggesting that you try to time the market or bet against it. After all, the market has a historical trend upward, along with a predilection for rising (companies find ways to profitability by bringing "new and improved" products and services to market).

However, if you're so inclined, here's an ETF that lets you bet against the market: Rydex Inverse 2x S&P 500 ETF, stock symbol RSW.

The idea is that its beta is 2x the S&P 500, the index it bets against. The cool thing about this is you can "short" the S&P 500, with limited downside risk (okay, you can lose all your money, but not more) and tax consequences that aren't as onerous as shorting a stock (which is always treated as a short-term gain and gets the concomitant higher tax rate).

So, if you want to short the market, RSW may be the way to go.

Found on Andrew Tobias' site.

View blog reactions


Post a Comment