I actually think that CRF will crash first. It trades at a higher premium and it has less assets under management. Unfortunately, i can't borrow the shares.... CRF will go down first, and CLM will follow shortly after people realize that CRF is not coming back.
Stacy, you're saying imagine what would happen if S&P500 stayed flat... I say imagine if there was a real prolonged correction! We just saw S&P lose 6% of its value in a matter of days, imagine if we had 10-20% correction over an extended period of time (like a year or two). These things happen once or twice every decade. We haven't had one since 2003, and we might be due.
Having this bad boy short ensures I don't lose much sleep at night. I'm not as worried about the rest of my overall portfolio, even though this housing scare sure is worrisome.