017 Stock Market thread
12-12-2018, 01:48 PM
I've been thinking of expanding my portfolio, my broker charges high margin rates but basically nothing to short the inverse of SPY (SH). Essentially this would be going long the S&P 500. This is my only reasonable option in terms of my long with my extra margin.
Now I'm not hyped on the S&P 500 in general but I'm thinking having some short positions in high beta stocks would help me hedge myself. I was originally thinking a basic idea would be shorting an ETF like SPHB would work perfectly but they are charging interest on it, so it would probably wipe out the gains.
So was thinking shorting stocks that have high betas and correlations to the s&p 500. I was thinking stocks like Amazon, Netflix, Shopify, Square, Autodesk. Basically high risk tech stocks. These stocks are free to short at my broker. Any other ideas?
So it would be long
50% SPY
40% Treasuries
10% short high beta stocks.
Now I'm not hyped on the S&P 500 in general but I'm thinking having some short positions in high beta stocks would help me hedge myself. I was originally thinking a basic idea would be shorting an ETF like SPHB would work perfectly but they are charging interest on it, so it would probably wipe out the gains.
So was thinking shorting stocks that have high betas and correlations to the s&p 500. I was thinking stocks like Amazon, Netflix, Shopify, Square, Autodesk. Basically high risk tech stocks. These stocks are free to short at my broker. Any other ideas?
So it would be long
50% SPY
40% Treasuries
10% short high beta stocks.