Gold and Shorts: Mastery for a Bear Market
Posted March 3rd, 2008 by Eric Cheshier
Recession, Stagflation, Bear Market, Inflation, and now Warren Buffett saying the U.S. economy is in a recession (this morning on CNBC) -- how to play it?
Simple. Gold and Shorts stocks. This week we've got a ton of reports coming from our government and the Fed's Beige Book is delivered on Wednesday. The potential doom and gloom is killing the market and as a fellow Master and Investor, I'm taking precautions. If the Unemployment Rate released on Friday is bad, that's the nail in the coffin and watch the sell off become the Jump Off.
Enough with trying to find the winning or rebounding stock, just buy Gold and Short this market. Here are some ETF's and stocks to play:
My favorite gold stock is Yamana Gold Inc. (USA) (Public, NYSE:AUY) and then comes Kinross Gold Corporation (USA) (Public, NYSE:KGC). Gold is going to $1,000 easy in this state of fear, no question. Silver is also looking good, Coeur d'Alene Mines Corporation (Public, NYSE:CDE) trades at $5 a share. The Masters recommend making a small position in these stocks and decide which ones you like the best, it's a good hedge for when the market is wetting the bed.
Then there's that QID play that we recommended back in November, it's still a good play. Buy UltraShort QQQ ProShares (ETF) (Public, AMEX:QID) . The End.
Looking for more Short or Bear ETF's? Thank TraderMike for throwing this list together, have at it, some great one's here:
Short & UltraShort MarketCap ETFs:
| ETF Name | Ticker | Benchmark Index |
|---|---|---|
| Short QQQ | PSQ | Nasdaq-100 |
| Short Dow 30 | DOG | DJIA |
| Short S&P 500 | SH | S&P 500 |
| Short MidCap400 | MYY | S&P MidCap 400 |
| Short SmallCap600 | SBB | S&P SmallCap 600 |
| Short Russell2000 | RWM | Russell 2000 |
| UltraShort QQQ | QID | Nasdaq-100 |
| UltraShort Dow 30 | DXD | DJIA |
| UltraShort S&P 500 | SDS | S&P 500 |
| UltraShort MidCap400 | MZZ | S&P MidCap 400 |
| UltraShort SmallCap600 | SDD | S&P SmallCap 600 |
| UltraShort Russell2000 | TWM | Russell 2000 |
UltraShort Style:
| ETF Name | Ticker | Benchmark Index |
|---|---|---|
| UltraShort Russell1000 Value | SJF | Russell 1000 Value |
| UltraShort Russell1000 Growth | SFK | Russell 1000 Growth |
| UltraShort Russell MidCap Value | SJL | Russell MidCap Value |
| UltraShort Russell MidCap Growth | SDK | Russell MidCap Growth |
| UltraShort Russell2000 Value | SJH | Russell 2000 Value |
| UltraShort Russell2000 Growth | SKK | Russell 2000 Growth |
UltraShort Sector:
| ETF Name | Ticker | Benchmark Index |
|---|---|---|
| UltraShort Basic Materials | SMN | Dow Jones U.S. Basic Materials |
| UltraShort Consumer Goods | SZK | Dow Jones U.S. Consumer Goods |
| UltraShort Consumer Services | SCC | Dow Jones U.S. Consumer Services |
| UltraShort Financials | SKF | Dow Jones U.S. Financials |
| UltraShort Health Care | RXD | Dow Jones U.S. Health Care |
| UltraShort Industrials | SIJ | Dow Jones U.S. Industrials |
| UltraShort Real Estate | SRS | Dow Jones U.S. Real Estate |
| UltraShort Semiconductors | SSG | Dow Jones U.S. Semiconductors |
| UltraShort Oil & Gas | DUG | Dow Jones U.S. Oil & Gas |
| UltraShort Technology | REW | Dow Jones U.S. Technology |
| UltraShort Utilities | SDP | Dow Jones U.S. Utilities |
Keep your heads up Masters, but don't lose your shorts, so play the market accordingly. 
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