I'm 75% cash right now and 25% in equties in my long term account. I never held anything for a lengthy time before so what do you guys think I should do to hedge for the upcoming down cycle. I timed most of my positions perfectly aside from BAC and when spx was at 750 I was down only $2300. I was thinking of buying 80 shares of QID. If QID goes towards the highs again around +30 from now thats about $2400 in gains.
Check this article out on hedging via inverse ETFs -- using the SDS (ultra-short S&P) in my retirement account helped hedge many positions against the volatility over the past several months. November 25, 2007 How to Protect Your Stock Portfolio From the Spreading Credit Crunch by Martin D. Weiss, Ph.D. http://www.moneyandmarkets.com/wp-content/uploads/2008/07/MAM767_Special_Report.pdf