Bigworld, >> 3x leveraged funds <<
Yikes, I'd think long and hard about using a 3X leveraged fund. I believe in the old Greek maxim of 'Moderation/Nothing to Excess'. If you average in with a 1X fund you can always move up to 2X or 3X later if the market confirms you're on the right side of the trade. If your timing is off with a 3X you'll be deep in the red before you can blink.
You're already way short the market and have plenty of hedges, so why go even further short? The way the hedge fund guys do it is to arbitrage different vehicles to get close to zero risk while guaranteeing a reasonable profit. Don't be a pig long, or in this case a pig short.
The way the market is now I would probably be close to net neutral on stocks but with a modest long bias. Being short bonds would have been a good idea in the last several months, but that's with the benefit of 20/20 hindsight.
Sounds like you already have enough money accumulated to where you can be conservative. Investors only need to be super aggressive in the accumulation phase, once you have the 'big pile' you can go for income and modest appreciation and avoidance of big loses. Buffett's famous 2 rules of investing - 1) don't lose money and 2) don't forget rule #1.
