Sun, Apr 20, 2014, 12:02 AM EDT - U.S. Markets closed


% | $
Quotes you view appear here for quick access.

Nautilus Inc. Message Board

you are viewing a single comment's thread.

view the rest of the posts
  • astral_tsar astral_tsar Oct 17, 2008 5:36 PM Flag

    One more time - Alert

    Hi, goodvibe. I'm a very old timer on this board with no opinion about whether the market is going up or down, but a warning about short funds.

    Be careful. Short funds work in a very squirrely way. It's fundamental to how NAV is calculated.. You can get a situation where the stuff they're shorting goes up, then comes back down to the same spot, but you've lost a bunch of money. For a short fund NAV depends not only on changes in the prices of the underlying securities, but on changes in the amount of money in the fund.

    This doesn't happen in a long fund, but short funds reward some shareholders at the expense of others in a way that is tricky to predict (unless you know not only how the market will move but how shareholders will move in and out of your fund).

    Live it, learn it, believe it.

    Anyway, good luck.

    SortNewest  |  Oldest  |  Most Replied Expand all replies
8.36-0.03(-0.36%)Apr 17 4:01 PMEDT

Trending Tickers

Trending Tickers features significant U.S. stocks showing the most dramatic increase in user interest in Yahoo Finance in the previous hour over historic norms. The list is limited to those equities which trade at least 100,000 shares on an average day and have a market cap of more than $300 million.
AsiaInfo-Linkage, Inc.
NasdaqGSWed, Jan 15, 2014 4:00 PM EST