BBOZ, BBUS, SNAS are the leveraged short ASX ETFs that I’m aware of. There’s a separate BBUS thread which BBOZ buyers occasionally post on. XJO thread also has some BBOZ’ers. These ETFs all share the same attraction for bears, or those looking for strong hedges against their longs without using options etc. They’re only good short-term and you need a good crystal ball to do ok with them. I’ve been in and out of all 3 several times, but not lately (except for a quick SNAS scalp). There are several negatives to these which I’ve learnt about over the last few months. The risk/reward ratio is poor unless your timing is spot on. Put in say $10k with great timing and the market drops 2%, so you profit $500. But what if the uptrend continues? You’re stuck, or forced to sell at a loss. Not worth the stress, in my case anyway. Check out the morale on the BBUS thread. It’s low, to say the least. I’ve learnt it’s much better to trade say 10 quality small caps @ $1,000 each on a short term basis. You can hang onto stocks forever, and if you choose quality then you’ll do ok sooner or later. Hang on to these 3 and their inherent decay eats away at them and you need the market to fall further and further as time goes on to break even or profit. With the S&P200 in a channel recently, BBOZ has been a very poor bet. Of course if you can time any future significant corrections then it’ll be a party. I’m a perma-bear but learnt my lesson and am now hunting profitably for quality among the small caps. I’ll be jumping back into these shorts when there’s a clear indication the markets have rolled over. Yes I’ll miss the first drop or two but I’ll be sleeping well in the meantime. Just my 1 cent’s worth. Glta.
