Wacky In Walker!

I don’t know what it is about late June/early July up here but we had a real fire about a half mile from my house. I was on my way back from town on an errand that was in itself wacky, I smelled smoke, slowed down, saw a lot of fire that appeared to be two acres in size so I hauled the last little bit to my house.

Joellyn was already getting ready, I got my fire gear and had a crew pick me up down just below the fire. I was initial attack and the first incident commander. I titled the fire the Snap fire because we anchored on Midnight Snap Road. I called for Forest Service support and air support and made a couple of other decisions that turned out to matter before ceding command to the Forest Service who changed the name (damn!) to the Midnight Fire.

After ceding command I then tied in up top with a bunch of different agencies to mop up. I was there from about 3:30pm until about 8:30pm. I may have more pictures coming from a neighbor.

On a personal note, I can’t believe Joellyn and I do this. Despite the intensity, it is very rewarding and fun.

Onto some ETF stuff.

Index Universe reports that ProShares has filed for inverse bond ETFs and inverse foreign ETFs. This has been a theme here of late that there will be more products to allow for some sophisticated risk reduction strategies or maybe just hog wild speculation.

The filing includes short and double short EAFE, Emerging Markets, Japan and China. For the bond ETFs they are short and double short 7-10 year, 20 year plus, liquid investment grade and high yield.

Assuming the fixed income funds are like the equity funds, you could get a T-bill rate and own an appreciating product if rates go up. That could be very important over the next five years.

Also included in this filing is double long, short and double short biotech and telecom.

Other ETF news is that Claymore almost granted my wish of a product of global exchanges with a fund whose name is too long but the ticker is EXB. It is 1/3 exchanges, 1/3 asset managers and 1/3 investment banks per what I was told in a phone call about the fund. It is 66% US. The largest exchange weighting is NYSE Euronext at 4.57% but there are four other stocks with greater weightings. The foreign exchanges each have very small weights and may not be able to move the needle.

11 Comments

  1. What the heck is the IC changing the name for? Trying to create more confusion as units on route wonder if they are going to a new scene? If this happened to me (voly structure fire guy with lots of surrounding forests) I would tell him he is an idiot. You based your name on a local geographical point. Totally valid. Confusion reigns on the fire scene; why make it worse?

    dnf

    Reply
  2. LOL, I told him “um, I already named it.” He didn’t care.

    The most important bit of training I have ever had was being told in my 130/190 class that all fires are just short of total chaos. This has been true in my time but thank goodness we get them knocked down every time, chaos notwithstanding.

    Reply
  3. Some people are just power freaks I guess.

    You guys probably need a burn. We haven’t had one through our forests in over 100 years. When we get one we are going to be screwed. Way too much undergrowth. Totally unnatural.

    cheers

    dnf

    Reply
  4. Those inverse funds….most existing ones now have such low liquidity, strikes me as not good for short term hedging. Probably have to pay a big premium on the bid-ask spread.

    Roger, sometime ago you polled us for future “themes.” One is unfolding now: food. I think there’s a lot a meat on this bone, though I’d be a little late to the party. Curious to go to Kroger’s today and see how much frozen seafood is still in the case from china. Supply will be hurt by this issue, and another issue is a dramatic loss in the bee population world wide. Demand is increasing in emerging mkts. Some brazillian food suppliers have increased 100% past 7 months. I’d really like a global basket that relates to food products and agriculture. Is there a cef that does this? I’ve started by own basket of two: pho..one I already had, and last week bought adm.

    Reply
  5. anon 8:59,

    Does DBA (client and personally holding) fit in with your theme? What about Bungee which I don’t own or Corn Products which I don’t own?

    Reply
  6. I held dba for a while and just lost comfort with it. Too narrow, too few agg products, too much volatility. In retrospect, kind of thing one just holds their nose.

    bungee…is this a stock or a reference to our mkt?

    Reply
  7. lol, Bunge (BG)is a soy bean company. I have never owned it.

    Reply
  8. From what I’ve seen, the bid/ask spreads on the ProShares ultra short ETFs are very reasonable relative to alternatives that provide comparable leverage. That may be partly a function of the fact that most of them have corresponding regular long Ishares ETFs. I didn’t look closely enough at the proposed list of new products to see whether that will still be the case, and I do think the SEC should require the prospectus for the funds to describe other potential types of slippage. My general take is that short term hedging is exactly what they are good for.

    Reply
  9. On the ETF theme…

    What does everyone think is the best way to research foreign ETFs like the Wisdomtree products?

    For instance, I’m interesting in the international materials ETF DBN (great yield) but I really don’t see any way to research it besides going over the annual reports of, say, the top 10 holdings. I don’t see a “foreign” version of Morningstar that would offer research, and these stocks aren’t going to be in Valueline research.

    Reply
  10. Good on ya Roger for the fire duty.

    Good on Powershares for the double inverse bond ETFs. Godspeed my brothers.

    Reply

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Wacky In Walker!

I don’t know what it is about late June/early July up here but we had a real fire about a half mile from my house. I was on my way back from town on an errand that was in itself wacky, I smelled smoke, slowed down, saw a lot of fire that appeared to be two acres in size so I hauled the last little bit to my house.

Joellyn was already getting ready, I got my fire gear and had a crew pick me up down just below the fire. I was initial attack and the first incident commander. I titled the fire the Snap fire because we anchored on Midnight Snap Road. I called for Forest Service support and air support and made a couple of other decisions that turned out to matter before ceding command to the Forest Service who changed the name (damn!) to the Midnight Fire.

After ceding command I then tied in up top with a bunch of different agencies to mop up. I was there from about 3:30pm until about 8:30pm. I may have more pictures coming from a neighbor.

On a personal note, I can’t believe Joellyn and I do this. Despite the intensity, it is very rewarding and fun.

Onto some ETF stuff.

Index Universe reports that ProShares has filed for inverse bond ETFs and inverse foreign ETFs. This has been a theme here of late that there will be more products to allow for some sophisticated risk reduction strategies or maybe just hog wild speculation.

The filing includes short and double short EAFE, Emerging Markets, Japan and China. For the bond ETFs they are short and double short 7-10 year, 20 year plus, liquid investment grade and high yield.

Assuming the fixed income funds are like the equity funds, you could get a T-bill rate and own an appreciating product if rates go up. That could be very important over the next five years.

Also included in this filing is double long, short and double short biotech and telecom.

Other ETF news is that Claymore almost granted my wish of a product of global exchanges with a fund whose name is too long but the ticker is EXB. It is 1/3 exchanges, 1/3 asset managers and 1/3 investment banks per what I was told in a phone call about the fund. It is 66% US. The largest exchange weighting is NYSE Euronext at 4.57% but there are four other stocks with greater weightings. The foreign exchanges each have very small weights and may not be able to move the needle.

Submit a Comment

Your email address will not be published.

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