tag:blogger.com,1999:blog-7294165939647321702.post6794865695100910008..comments2024-03-28T13:45:43.362-04:00Comments on <center><a href="http://www.barelkarsan.com">Barel Karsan - Value Investing</a></center>: Betting On BubblesSaj Karsanhttp://www.blogger.com/profile/04493152766022812984noreply@blogger.comBlogger2125tag:blogger.com,1999:blog-7294165939647321702.post-7815362605199917432010-10-14T21:06:05.381-04:002010-10-14T21:06:05.381-04:00Another way to play this is to buy puts on somethi...Another way to play this is to buy puts on something like TLT. If you only want to hedge against hyperinflation, you can buy far out of the money puts. It will probably expire worthless but it's cheap insurance, at least probably cheaper than buying gold at the current time.Walternoreply@blogger.comtag:blogger.com,1999:blog-7294165939647321702.post-40381485920951900102010-10-14T19:17:25.112-04:002010-10-14T19:17:25.112-04:00Investors - please be careful when using these lev...Investors - please be careful when using these leveraged daily rebalanced funds! <br /><br />For mathematical reasons, a bet on one of these is a bet against volatility.<br /><br />For instance, if the underlying asset moves sharply one day, and then the next day reverses to close back at the starting price, then both a 2x long and a 2x short position will have lost value (due to the rebalancing).<br /><br />For evidence of this, see the performance of SDS and SSO over the last few years.Unknownhttps://www.blogger.com/profile/11394409575254934751noreply@blogger.com