Then there is always the new etfs which are double short many indices. DOG DXD SDS TWM QID and others like DUG which short the oils. Timing is relatively important, as you want to buy the bulk of your port at a major low in the indices. It really does not matter which market throughout the world. If the fed does not cut tommorrow, its boogy time. Then you may consider pairs, like ITU long/ WB short or FRO long/ GMR short and so on. Timing is extremely important if you want to make money on both ends with pairs. But the traditional long only portfolio is much suited with your ideas of taking some off at the top and grabbing some ultrashort etf, buying them first at overextended markets then letting loose on the positions that are the weakest second. both involve some degree of market timing pairs being the most tedious and extensive. good luck. p
Morton is on to it. Imagine that a coin-flipping monkey is managing your Portfolio. 100% Long stock picking = 10% historical return And now... 100% Long stock picking + Equivalent Short S&P = 0% return (but less volatility) You can see that the monkey is giving up 10%... That's why this is rather pointless. So ASSUMING you can actually outperform the market by picking stocks... You should: (1) Go 100% long OR (2) Go 50% Long Stock and 50% Short Stock... Where you are stock picking both long and short.