Thursday, November 8, 2007

Shorting China

The Journal had an article today on the Pro Funds Group that is launching an ETF that shorts the Chinese Stock Market through inversely following the FTSE/Xinhua China 25 Index Fund. It is levered 2X just like SRS I have talked about. A couple of things, the fact this came out is another sign I think that the bubble is not about to pop, it still has a ways to inflate. Secondly I will be invested in this at some point almost guaranteed (What a fabulously way to short the China market) but it will not be anytime soon and it will be after the China market is already down 15% plus. I have no plans of trying to be any type of hero and calling the top of the Chinese stock market.

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