I purchased 50 shares of SDS today at $40.90. For those unfamiliar, SDS is an UltraShort ETF for the S&P 500. So for every 1% that the market falls, SDS will rise twice as much (2%). Contrarily, for every 1% the market rises, SDS will lose 2%. By purchasing SDS, I believe the market will fall.
I currently believe that there are too many negative factors on the economy with a handful of catalysts that will occur before 2009 is over. I intend on writing an economic page in the near future. For now, most of my thoughts are echoed in both Hussman’s and Gross’s latest articles.
This purchase is part of the 2009 portfolio and will show up in the Performance page (along with other SDS related transactions) at the end of the quarter.
