“Dow 5,000 sounds absurd, right? That’s what people said when we foretold Dow 6,700 over two months in advance and Dow 9,000 in March 2009 when the market was at multi-decade lows. Current conditions are reminiscent of what we’ve seen in January 2009, October 2007, and April 1930. This is not the time to stick your head in the sand,” Simon Maierhofer Reports From ETF Guide.
“The similarities between January and the present month of August are strikingly familiar. The rally from November 2008 proved to be fertile soil for theories of, the (first) bailout is working and the worst is behind us. Of course, that was not the case,” Maierhofer Reports.
“Of course, investor sentiment is not the only foundation for a bearish outlook. Valuation measures originating from the market itself have proven to be very reliable. In fact, a look at history reveals that no prior bear market has bottomed unless P/E ratios and dividend yields (the easiest reflection of value) have clocked in at levels indicative of a bottom,” Maierhofer Reports.
Simon Maierhofer goes into detail and lists “Conservative short options” including:
Short S&P 500 ProShares (SH)
Short Dow Jones ProShares (DOG)
Short Financial ProShares (SEF)
Short Russell 2000 ProShares (RWM)
Simon Maierhofer goes into detail and lists “Aggressive short strategies” including:
The UltraShort Financial ProShares (SKF)
Direxion Daily Financial Bear 3x Shares (FAZ)
The UltraShort Russell 2000 ProShares (TWM)
Direxion Daily Small Cap Bear 3x Shares (TZA)
Full Story: HERE