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gfp927z

09/25/17 12:10 PM

#12406 RE: bigworld #12405

Bigworld, A while back you discussed the advantages of using HDGE vrs a regular 1X inverse ETF on the S+P 500. I was wondering if you could review those advantages again? I think there was a tax advantage if held over 1 year (long term capital gain) and some other factors favoring HDGE. Thanks.

I'll probably use cash and gold as the main hedges, but something like HDGE could come in handy in the not too distant future, considering the high probability of war with N Korea next year plus QT/quantitative tightening by the Fed, on top of higher interest rates. Then there are the ominous trends of the de-dollarization of global trade, and a lack of buyers at US Treasury auctions as the Fed backs away. Still too early to go short, but the day is approaching.