Sunday, August 24, 2008

Worldwide wipeout ahead? What a joke!

Just take a read of this article by John Markman who now tells us that a worldwide cataclysm is ready to happen, where he recomends buying the Pro-funds double inverse short ETF's to profit from the coming disaster:

It's more likely that U.S. equities will plunge...The French market is also une grandestinque-bombe, down 22%, led by energy and banks. The Belgian market is worse, down 30%, with Germany down 24%, Austria down 23%, the Netherlands down 21% and Spain down 23%. Elsewhere on the Continent, the news does not improve. Sweden is off 23%, Russia is down 23%, Turkey is down 25%, and Greece is down 36%....How about Asia, the crown jewel of global growth? It's a wet noodle...Meanwhile, fear has gripped corporate bond investors by the throat in ways that make stocks' problems look many are trading like penny stocks...And then this gem:

ProShares has a variety of exchange-traded funds, or ETFs, that allow you to buy an instrument that trades inversely to stock and bond indexes. That provides a relatively easy way for both institutions and independent investors to short, or bet against, both markets and sectors.

Like this idea isn't in the hedgies playbook already? How about Gretchen Morgenson's piece in the NY Times on the health of Fannie and Freddie? What hedge fund slipped her that?

Unlike Gretchen, Markman comes up with his own ideas. Just last month, he touted energy before it's historic crash:

Our road map for the past few months has been pretty clear: With a global recession brewing and energy prices rising, it simply makes sense to be short industries and sectors dependent on buoyant economic growth and to be long energy producers and service providers.

Considering that the SEC will probably come out with new short selling rules this week, I just find it incredibly naive that now you can recommend double bearish ETF's!

I'd take the other side of that trade! Sold to you John!

No comments: