April 2, 2020. Back in 2008 we started this blog Dividend Income Investor with the intent of selecting high quality dividend paying investments. This worked out really well for a long time. Until, February 2020 when markets collapsed.
We sold almost everything except the Corporate Bonds (which have treated us very well over the years. The Corporates have ‘come back’ from their lows recently and so we continue to hold.
We are finding ourselves being ‘forced’ back into the stock market to make an income, for ex buying some gold.
We are also starting to ‘short’ the market expecting declines in April.
We envision another rally in May or later, but in the meantime we bought SH exactly four minutes before the markets closed on Wednesday. (SH goes UP when SPY goes down). We will buy more today.
|FUND DESCRIPTION: The ProShares Short S&P500 Fund is an exchange-traded index fund that is a separate investment portfolio of the ProShares Trust, an exchange-traded fund that consists of separate investment portfolios (each, an index Fund). INVESTMENT OBJECTIVE: The Fund seeks daily investment results, before fees and expenses, that correspond to the inverse (opposite) of the daily performance of the S&P 500 Index. If the Fund is successful in meeting its objective, its net asset value should gain approximately the same amount, on a percentage basis, as any decrease in the Index when the Index declines on a given day. Conversely, its net asset value should lose approximately the same amount, on a percentage basis, as the Index when the Index rises on a given day. The Fund seeks investment results for a single day only, not for longer periods. This means that the return of the Fund for a period longer than a single trading day will be the result of each day’s returns compounded over the period, which will very likely differ from the inverse of the return of the Index for that period.|
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