Describe your investment strategies in collapsing currency and stocks

thepixelpusher

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What are your investment strategies once you see the Dollar, Euro or US Stock Market start to collapse? Use shorting ETF's, etc.?

• Include any strategies that would help simple investors or experienced investors.
• What signs do you look for in determining a true collapse?
 
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Okay, I'm trying to push this up to get noticed.

Stocks look really bad these days and I've used the ETF "EUO" to short the Euro and ETF "FAZ" to short the financial companies taking hits during this scrutiny of JP Morgan. I'll probably only hold these very short term since they don't do well over time. I'm still looking to get a strategy in place to have investments take advantage of a severe downturn or crash in the stock market.

Please share you strategies.
 
Go short in anything likely to go down. The particular asset doesn't really matter so long as it goes down.
 
Instead of ETF's you should trade the actual commodity or future. Currency futures are a great instrument in any market condition long term or short term.
 
It depends on your investment strategy time period. If the stocks are paying good dividends and are well positioned in a market that will recover then holding them for their dividend yield can be fine, but if you are trading short term and price drops it seems worthwhile to wait a few days to see if price retraces and then cut your losses.
 
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