Subscribe to
Certainly the investors in financial institutions will benefit from new rules to prevent naked short selling and other to-be-announced variations on the short selling theme. Essentially, their stocks will be protected from particularly aggressive short sellers.
Another beneficiary is likely to be ProShares. The company offers a selection of inverse ETFs that allow investors to short various market sectors (financials, tech, semiconductors, for example) or market styles (mid-cap value, small cap value, small cap growth, etc.) or indexes (the Dow, the S&P 500, the NASDAQ).
There are always investors who will want to short stocks, especially in an investment environment like we are experiencing these days. The ProShares ETFs may offer a simple way around the rules. And the potential increase in volume will serve to reduce the bid/ask spread, making trading these ETFs more efficient.
For more detail on this topic, I suggest you read the following post by John Spence at MarketWatch: New short-selling rules could boost ETFs.
Thursday, September 18, 2008
Who benefits from new short selling rules?
- click for Related Content
With the S&P 500 falling to a fresh two-week low, the big question is whether this is a correction, or the start of a major trend on the downside?
Our friends at MarketClub have just finished a short video that details many of the key concerns that we have for this market. If you have not seen one of their videos before you may enjoy this one. This video does not require a plug-in.
The video is free to watch and there is no need to register. I would love to get your feedback about this video on our blog.
I highly recommend students of the market take a few minutes and watch this timely video. Even if you’re a seasoned pro you may find what you see interesting and therefore profitable.
As always, this informative video is complimentary with no strings attached.
| Disclaimer: This site may include market analysis. All ideas, opinions, and/or forecasts, expressed or implied herein, are for informational purposes only and should not be construed as a recommendation to invest, trade, and/or speculate in the markets. Any investments, trades, and/or speculations made in light of the ideas, opinions, and/or forecasts, expressed or implied herein, are committed at your own risk, financial or otherwise. |
Try the
0 comments:
Post a Comment