Stewart observes that selling short works if an investor knows when the market is overvalued and then know when a correction has run its course. The odds of knowing both are rather low.
Give him a pat on the back for conducting this experiment.
It’s great to see media people talk about their experiences and are honest about what they did and learned. The fourth quarter was a good one for the markets – it’s tough to make money shorting in a market like that. Stewart also lacked an exit strategy – something any reader of ETF Trends will recognize as a no-no! [Stop Predicting, Start Trend Following.]
For more information on inverse ETFs, visit our long-short category.
Max Chen contributed to this article.