WHERE TO HIDE? SHORT IT!

Here are just some tips to hedge your portfolio because we all know that we’re tired of seeing all the red in our computer screens.  And sometimes watching our portfolio sink lower and lower is a little alarming especially since we have decided how to spend that money already.  Anyhow here are a couple ideas.  They don’t include liquidating your precious portfolio.

PUTT OPTIONS:

With increase volatility and stocks heading down, you can buy putts to simple gain some cash while your positions drop.  For example if you own Apple, AAPL at $130, you can buy some puts at $130 so when they drop, you can make some money on the options and still keep your longs in Apple.

SHORT ETFs:

These are exchange traded funds that short the market but the good thing about these funds is that you buy these funds and you don’t short regular stocks that could skyrocket causing you to lose more than you expect.  Some examples are:

UltraShort QQQ ProShares (QID) – Double the move of NASDAQ

UltraShort Dow30 ProShares (DXD) – Double the move of DOW

Short Dow30 ProShares (DOG) – Shorts the DOW

UltraShort S&P500 ProShares (SDS) – Double the move of S&P

UltraShort MidCap400 ProShares (MZZ) – Double the move of MidCap 400

These are options for people but it’s worth noting that the user oriented community Marketocracy had a spike in negative sentiment about the market a couple weeks back and it seems they were right.  Crowd sentiment.  I’ll try to follow it more for everyone.  For now, don’t panic, it’ll be ok.