Friday, February 11, 2011

The Sarcasm Report v.89

Now that the stock market has nearly doubled from its lows, it is time to get aggressive and make some serious money. The lowest lying fruit is gone. We need to reach up high in the upper branches for the good stuff now.

Shorting Inflation Protection with TPS

ProShares UltraShort TIPS (TPS) seeks daily investment results that correspond to twice (200%) the inverse (opposite) of the daily performance of the Barclays Capital U.S. Treasury Inflation Protected Securities Index Series-L.

The 0.95% expense ratio...

Yes, it is time to double short an investment that holds individual bonds that are *guaranteed* to grow faster than the inflation rate (if held until maturity).

And it only costs about 1% per year to invest!

What's not to like? Don't be shy. Invest for 30 years. Make it a long-term plan.

It won't come cheap though. You'll lose 25% in purchasing power over 30 years due to the compounding of the expense ratio. You'll be looking to make up that difference as investors overall seek to lose purchasing power though.

Would investors someday lose interest in purchasing power? Well, there is the dotcom bubble and real estate bubble to factor in I suppose. Anything can happen.

If you missed the great opportunity to lose money shorting treasuries without inflation protection when
TBT was first introduced, then this is your chance to try again by shorting something that actually has inflation protection. How can you lose?

And let's not forget, baby needs new shoes!

11 comments:

getyourselfconnected said...

OMG, is that a real fund? How stuoid. Those double, triple inverse things are goign to be gone soon. What a joke.

Stagflationary Mark said...

GYSC,

It could be worse!

I thought TPS was double shorting toilet paper. ;)

Mr Slippery said...

I am sad that it is a double short ETF based on only one other synthetic index. Why can't they have one that is double short a basket of other double short ETFs?

getyourselfconnected said...

I think I read someplace that 3X inverse funds were getting scrapped, cant look for the link now.

Stagflationary Mark said...

Mr Slippery,

Double shorting a double short basket?

I love it!

If you don't mind, I'm taking your idea and running with it.

Illusion of Proseprity's Ultra Pro Expense Fund

We seek daily investment results that correspond to the value of cash minus twice (200%) the movement of the fund's daily expenses.

Hahaha!

Stagflationary Mark said...

GYSC,

How can we get even more leverage into this system without 3x inverse funds?

It's a shame really.

getyourselfconnected said...

Indeud.

Friday post up in a bit, contest night!

GawainsGhost said...

Hey, Mark, did you see that story on the flash crash of Apple stock? I read it this morning on Drudge. $10 billion in market capitalization wiped out in four minutes. Wow.

Anyway, for all you investors out there, things could be worse. You could for example be Jerry Jones. Holder of a $750 million mortgage (and that's just the principal, doesn't include the interest), no corporate naming rights to ease the pressure, seating problems at the Super Bowl, fans whose tickets were denied, some who paid $100,000 for a PSL only to end up with an obstructed view, on top of what the actual ticket cost, lawsuits flying. What a mess. Oh, and don't forget a football that totally sucks, quits on the field.

This is the most valuable franchise in American sports? I don't think so.

Stagflationary Mark said...

GawainsGhost,

Fascinating story. I had not been paying attention to it. What a mess indeed.

Documents outline Cowboys' involvement with troubled Super Bowl seating project

GawainsGhost said...

This guy is freaking hilarious!

http://www.youtube.com/watch?v=TnPINGavPP0

Stagflationary Mark said...

Too funny!