My UpDown account is not doing all that well lately. I'm at -1.16% right now since starting in March. Thats an annualized return of -2.3%. But on the bright side the S&P500 is down -8.7% in that same period so I'm doing 9.8% better than the S&P 500 thus far. In the same period the Dow is down 10.5% and the NASDAQ down 2.2%.
While I'm pleased that I'm doing better than the indexes, losing money is not a good thing.
I've made some very risky (possibly stupid) moves lately looking for bargains among the financial stocks that have been in jeopardy of failing.
I put about $30,000 into 3 stocks:
- Lehman (LEH) at $4 and then it went bankrupt and dived to 13¢.
- Fannie May (FNM) at $1 after the government took them over.
- Washington Mutual (WM) at $3.25
As another test I bought a short UltraShort S&P500 ProShares (SDS). This is an ETF setup specifically to short the S&P 500. I bet on this one because the overall market is down so the short should be going up. Since January SDS is up 25% and the S&P 500 is down about 12%. It seems like a good decision to short the S&P right now. This is another test that I'm trying out in UpDown.