Quote:
Originally Posted by MrPrena
TVIX is little too early for my taste, but I am sure it will play out well. I think TVIX is probably better than proshare shorts or any other bear ETFs.
I guess the EdJones FA loves "Blue Chips" OR EJ analyst sees bear or corrections near future ,and FA is recommending to go defensive.
I agree. 2.5% is really steep! 
I am long on AMD, and plan to own Sprint within 2-6days.
I am very tempted to short TMUS at this time. |
You're right, it may be too early to look at TVIX but bear in mind (pun intended
) we're using tvix to hedge against a catastrophic drop in the market while still enjoying the current rally (albeit at a tempered pace). If SPY gained 1% tomorrow and TVIX simultaneously lost 10%, our net TVIX + SPY holding will have gained 0.5%. Having a position in TVIX tempers the overall gain in the short term but it also mitigates against catastrophic drops in the market. It's being used as a buffer (or more specifically a hedge) in the same vein that nnnnnnnnnnnnn described several pages ago, and in that regard this may be the right time to use it if you think a correction is on the horizon.