7 ways to bet against the rally

With new highs on the Dow and rising risks in the economy, many experts say a pullback (or worse) is near. It's time to play defense -- or something more daring.

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VIDEO ON MSN MONEY

93Comments
Mar 13, 2013 6:54PM
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On #2 :

"Interest rates fall from here"  ..... What is this guy smokin' ???

Interest rates are already at 0%.  what does this guy expect?  Negative interest rates?


Mar 13, 2013 9:25PM
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I advise against using any of these so-called tips. Even very experienced investors can get their heads handed to them.

I'll boil the article down for you - either short the market in some fashion mentioned in the article or go into bonds or Gold. When he talks about BONDS, he is talking NOMINAL interest rates which are around 2%. When you subtract inflation, around 2.5% you get real interest rates which are are negative or -0.5%.

Shorting the market is really tricky. This market may eventually correct big time, my belief, but while waiting for it, it may also go up a whole lot more forcing you to cover your shorts at a big loss- OUCH!

And Gold? Hell I don't know. 

I have seen investors over my lifetime give up on the market playing all of these games due to losing all their money.

Har har har!
Mar 13, 2013 6:46PM
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This author offers high risk options to hedge teh risk of the market with the exception of going to cash.

Cash?  Can you say duh?  What a worthless article.  Not to mention most investor are not sophistcated enough to do most of what is offered.

 

 

Mar 13, 2013 6:57PM
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He misses the simplest one - sell options on things you already own.  If you are happy with the price now, or are needing to re-allocate to balance things,  this is simple and allows you to lock in a price as well as take in the value of the sold option.  If the stock goes up anyway, it's not like you've lost, you just didn't gain as much as you could have......
Mar 14, 2013 7:37AM
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The big warning sign. This rally is not broad based. Only the major indexes have been up. More than half of my portfolio with some very big names has been down or stagnant, and these companies are well run, but are very reliant on a good economy. WE DO NOT HAVE A GOOD ECONOMY!
Mar 13, 2013 9:45PM
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Do you have some advice for the millions of people and trillions of dollars tied to retirement plans and 401k's that are 100% tied to the market. None of these options are feasible for 80% of the money in the market. Get real! If the market reverses as advertised here, which it probably will, millions of people expecting to retire will be forced into poverty just as it happened in 08'. Let's see an article explaining that angle.
Mar 13, 2013 8:47PM
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Good at predicting 200 of the last 2 corrections.
Mar 14, 2013 8:02AM
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Article FORGETS/OVERLOOKS that So much money is being added/dumped blindly  in to the market via 401k.  The 401k is most Employees only option to save for retirement, save on taxes and get free company match money.

 

From my perspective , the stock market is a way for investment companies, to steal money legally.  They charge Fees and trade for their own interests to increase there profits. 

 

So my point is they (investment firms) are learning that you can kill a sheep only once but shear it many times.

 

I believe the market will continue to have volatility but rise slowly until the government starts regulating.

 

Chip

 

   

Mar 14, 2013 11:23AM
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If you believe this is a real come back and not just some up swing because of the $85 Billion each month that Uncle Sam is pumping in then I have some swamp property I would like for you to look at purchasing. 
Mar 14, 2013 8:40AM
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The most important thing Wall Street must do is get you to constantly be doing something... anything, as long as it generates fees, commissions, and trading margins for them. They don’t have to be right on their calls, they just have to be convincing.

 

In my years of investing, I’ve discovered the most difficult and often most profitable thing to do is…do nothing.

Mar 14, 2013 5:52AM
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100% of my money is in gold.  It's about to explode as this Obama / Bernacke market collapses.
Mar 13, 2013 8:18PM
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LOL....this author seems to always be doom and gloom!  I read people saying that in comments a month or two ago so I've been watching and it's funny that the market keeps hitting new highs while we are being told to sell. 

 

I might actually go all cash soon for my "trade" money, but NOT b/c of anything I read here.  :)

 

"It has to go down...eventually I'll be right...." comes to mind....

Mar 13, 2013 7:36PM
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OMG, Anthony is eventuallygoing  to be right but it is almost embarrassing at this point. Wolf, wolf, fire, fire!
Mar 14, 2013 9:29AM
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Oh I'm betting against the rally all right. In fact, I'm betting against the entire cluster**** by NOT participating.
Mar 14, 2013 9:11AM
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Of course a pull back will happen. Check the last few years. Come spring/summer the markets come down, then go back up at end of year. Perfect time to take some money off the table. Too many stocks at 52 week high and many at 5 year high. My best performing stocks stop going up a week ago and some are going down slightly. Nothing wrong with some profit taking. Cash is fine in the very short term.
Mar 13, 2013 7:53PM
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Does this guy ever have any good advice for people in the markets. MSN should let this guy go.Never has any good advice
Mar 14, 2013 7:53AM
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There was a 20% pullback in 2011 do you remember?

Didn't think so...

If you just stayed put then you are doing just fine now. There is only one thing you need to remember: businesses are the only wealth creating entities, in the long run nothing can payoff more than investing in them.

But it requires patience and steadiness, above all it requires you ignore types like Tony


Mar 14, 2013 11:48AM
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 I see a lot of people are confusing the government with Wall Street. 

Wall Street has purchased our government - mostly the Republicans because they love the system and are in agreement with Wall Streets values - but they own both parties - yes even the tea party Republicans - the system has been set up so that candidates can't get elected without Wall Street.

 Wall Street is never satisfied, they want your Medicare dollars, Social Security dollars, your 401K until there is
nothing left - it is all consuming.
 
They are counting on the stupidity of Americans to keep choosing R's of D's to bicker against each other and name call while they steal the rug out from underneath you but until we wake up
Mar 14, 2013 3:32PM
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Due to so much manipulation by shrewd multi-millionairs in the market...the average investor should probably just do the opposite of what they think would be the right move.

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