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Posted: 7/22/2010 11:42:40 AM EDT
Stock market advice needed.  ** Cross over stockbrokers, all welcome, all welcome **

I'm 45 years old and have my 401k money in the following vanguard index funds

30% S&P 500

20% mid cap balanced fund

20% small cap balanced fund

20% total bond market fund

10% total international


What say ye?

I like indexing because of the low expense ration and the fact that indexes outperfom like 80% of the managed funds

I also like indexing because of the diversification.

Note that white folk's greed runs a world in need.  Our Supreme Rock Star Overlord/Savior says so.
Link Posted: 7/22/2010 11:58:13 AM EDT
[#1]

Seems to me you might need to diversify for the downside.  The market corrected almost 70% from the March '09 lows.  



There are several 2X and 3X inverse ETF's that might help you achieve this.  But know, they are extremely volatile.

Link Posted: 7/22/2010 12:01:32 PM EDT
[#2]
Quoted:
Seems to me you might need to diversify for the downside.  The market corrected almost 70% from the March '09 lows.  

There are several 2X and 3X inverse ETF's that might help you achieve this.  But know, they are extremely volatile.



eh?

nicht verstehen

Link Posted: 7/22/2010 12:19:59 PM EDT
[#3]





Quoted:





Quoted:




Seems to me you might need to diversify for the downside.  The market corrected almost 70% from the March '09 lows.  







There are several 2X and 3X inverse ETF's that might help you achieve this.  But know, they are extremely volatile.











eh?





nicht verstehen










I had to google that shit to figure out that you do not understand my post.








Next time, please just say "I do not understand your post".





Your portfolio assumes sunshine/rainbows/skittles as each fund is invested LONG.  Meaning you are betting that it is going to go UP.





Like I already mentioned, the stock market is up about 70% in a 16-month period.  You might not want to buy high and sell low - which is what will happen if the market takes another dive (or monumental crash).





Therefore, these 2X and 3X inverse ETF's are a way to hedge your bets.  Then you can still be long say 70 or 80% - but with some protection to the downside.





Research SDS, SRS, SKF for the 2X inverse ETF's; and FAZ, TZA for some 3X inverse ETF's.  Also check out Proshares.com





 
 
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