BBOZ - BetaShares Australian Equities Strong Bear Hedge Fund

[PZ99]

BBOZ is an etf that bets against the Australian share market with a ratio of 2:1 to 2.75:1

EG: For every 1% decline you get a 2%+ increase.... and vice versa (beware)

https://www.betashares.com.au/fund/australian-equities-strong-bear-fund/

One suspects some decent activity (positive or negative) for the remainder of 2020

 

[qldfrog]

This is part of my safety package:
Average buy around $11..along the years..
was at $20 when i started
I had severe paper losses, no income but now selling some parcel every week to counter balance other losses
Overall a success and playing its role, i even bought some more at the last asx exuberance last week
Highly recommended

 

[qldfrog]

Sold parcel 19.4ish this morning
Balancing losses elsewhere

In the USA, there are some etf leveraging at 3 times Russel index, etc
Some of these are an easy way to add security to your portfolio if you can not or are not confident enough to buy shorts
PS i am not paid for the promo
BBOZ boss, contact me, i can even accept bitcoins

 

[mikmac]

Sold parcel 19.4ish this morning
Balancing losses elsewhere

In the USA, there are some etf leveraging at 3 times Russel index, etc
Some of these are an easy way to add security to your portfolio if you can not or are not confident enough to buy shorts
PS i am not paid for the promo
BBOZ boss, contact me, i can even accept bitcoins

Careful with those leveraged ETFs/ETNs... got badly burnt last week when UWT (Crude Oil) didn't track the index and my stop loss failed to trigger

 

[qldfrog]

Careful with those leveraged ETFs/ETNs... got badly burnt last week when UWT (Crude Oil) didn't track the index and my stop loss failed to trigger

Point taken,
Bboz is ok but not to play with SL etc
Buy sell as an insurance coupon

 

[InsvestoBoy]

Some of these are an easy way to add security to your portfolio if you can not or are not confident enough to buy shorts

You are literally buying shorts when you buy BBOZ.

 

[cutz]

Too late for that, the horse has already bolted !

 

[qldfrog]

You are literally buying shorts when you buy BBOZ.

yes but very easy to do it , no warrant, no short platform, they probably take their cut, it is also leveraged
Anyway, a simple way for non pro like me to get a bit of safety net

 

[InsvestoBoy]

yes but very easy to do it , no warrant, no short platform, they probably take their cut, it is also leveraged
Anyway, a simple way for non pro like me to get a bit of safety net

I don't like it as a hedge.

If you have $100,000 exposure to the ASX, you need to stump up $50,000 to hedge. You have to pay brokerage and then CGT if your hedge works.

Why not just sell $50,000 of your ASX exposure?

 

[finicky]

I was veering towards taking the plunge and buying into this today. Feeling jaded with the ASX recently. Been more interested in getting a new eating plan and supplement regimen set. Mission - increase years of 'health span' via time restricted eating, diet and supplements. To this end I blew $700 bucks on cutting edge mitochondrial energy boosters and other stuff from a U.K outlet: https://donotage.org/products/
Search: David Sinclair + NMN or Rhonda Patrick on Youtube

There's not really any chart reason that I can see to buy BBOZ or my other hedging target, BBUS, except the price has got so low - lower than before the Wuhan crash. Can you believe the complacency? Of course the price will bound out of the gate the day a crisis hits.

I have crudely extracted two more 'indicators' out of the frontal lobe ping pong going on in the (2021) Bull Market thread. They being the volatility charts of VXX for the S&P and XVI for the ASX200. They might help me time a decision to buy BBOZ, BBUS - but probably not. I'll probably just buy on impulse one day. I was hoping to have something that would be bearable to sell to fund the hedges, like a monster day from KCN or MBK, but no dice so far.

 

[peter2]

Don't let your frustration make do do something stupid (like buy BBOZ without a plan). Examine why you've feeling frustrated. Reduce that cause. You've read that sometimes having no position is the right one. Patience (grasshopper). [I hope you're taking resveratrol with the NMN. ]

BBOZ is a poor long term hold as the value melts away (compounds away). We'll know when the market starts to tank big time and being a day or two late won't matter. We'll be scrambling to exit all our longs before thinking about buying an inverse index ETF.

 

[finicky]

@peter2 - Yes, resveratrol with olive oil - as well as TMG and berberine.
Time restricted eating: have been doing 2 pm - 10 pm eating window or shorter, going to try to switch to a morning eating period instead, 10 am - 4 pm, starting tomorrow

 

[finicky]

Re: a buy time decision for BBOZ, BBUS, I have two examples of people I follow who have already done their buying and advised their subscribers to do so: Vern Gowdie (a long time bear whose views I like) and Tony Locantro who has made his clients so much on specs that he's trying to tether them to reality with these etf hedges. So I figure I'm getting in at a better time than these two formidable figures - not all that rational.
Once the price moves sharply I will have hesitation because as a bottom scaper I begrudge not buying at the low and tend to wait, so playing a bit off my own psychology there.

 

[Dona Ferentes]

a Blue Mtns based commentator, in his weekly newsletter, came out with this on Saturday, after running through the usual off the scale charts (that I haven't managed to copy) (FARBAST index, M2 YoY Index, Small Trader Call Buys as % of NYSE volume, TLSA):
"This is what is smack bang in front of us.
Why fight it? Why not sit back and enjoy it?
Why not join the call option buying crowd?
It goes without saying that there is overwhelming evidence that we are witnessing a speculative frenzy.
You also know that virtually every U.S equity valuation metric is flashing red and is now priced for absolute perfection...plus, plus.
Naturally we have to mention Tesla."

"...let me try and sum up.

I think we are on the verge of a very sharp drop in equity markets and we need to start carefully considering various strategies to protect portfolios.
We know that the asset bubbles on Wall Street have been fuelled by historic monetary and fiscal stimulus.
We know that the disconnect between Main Street and Wall Street is now as wide as it has ever been.
We know that income inequality is as wide as it has ever been.
We know that investors are now motivated more by the fear of missing out and that valuation is given scant consideration.
We know from history that such episodes do not end well.
We also know that the Wizards of Wall Street have a powerful vested interest, to keep you fully invested...

"what I’ve been doing:
"I bought March puts on SMH (VanEck Vectors Semiconductor ETF).
I am short NDX futures.
I’m still long March VIX futures.
I’m short Tesla and want to increase this position.
On the other side, so to speak, I’m still long ANZ, Nikkei 225 Index, Rolls Royce, GDX, SIL, AGG, EVN and initiated a small position in SYR."

 

[mcgrath111]

Re: a buy time decision for BBOZ, BBUS, I have two examples of people I follow who have already done their buying and advised their subscribers to do so: Vern Gowdie (a long time bear whose views I like) and Tony Locantro who has made his clients so much on specs that he's trying to tether them to reality with these etf hedges. So I figure I'm getting in at a better time than these two formidable figures - not all that rational.
Once the price moves sharply I will have hesitation because as a bottom scaper I begrudge not buying at the low and tend to wait, so playing a bit off my own psychology there.

I think the quote that applies best here is "The market can remain irrational longer than you can remain solvent" - Valuations may have gone out the window (....Afterpay).
What makes me uneasy is when I see every man and his dog buying shares / talking about shares, I think oh boy here we come.
I've used bboz and bbuz before, yet only for intraday trades. (When market is real volatile) - I couldn't trust my judgement as to predicting the market longer term though- if you manage to time it though, I'd love a told you so reply haha

 

[finicky]

@mcgrath111 I'm pretty sure I can nail it to within days of the low ? ?

 

[Dona Ferentes]

Before or after?

 

[Smurf1976]

It goes without saying that there is overwhelming evidence that we are witnessing a speculative frenzy.

Whilst I agree with that, there's also the issue that such things can go on far longer than anyone expects so I'll be waiting for evidence that the end has actually been reached.

It does bring back memories of 1999-2000 and 2007-08 though and to be more specific, now feels rather like very early in the year 2000 to me yes. Different in detail but many similarities.

That said, I recall a real estate agent talking about the housing bubble and that a decline was likely. That was in 2003.....

This ETF does offer a convenient means of shorting the index but considering it's leveraged, getting the timing right is rather important.

 

[Gunnerguy]

I have selected BBOZ for the May Monthly share trade competition.
A leveraged Bear Fund in the current environment doesn't seem too unsuitable.
April 30th ASX declined and NDQ in the US did also.
'Sell in May', and over high valuations in the 'media'.
A reasonable punt I think.

Gunnerguy.

 

[pozindustrial]

Speaking from experience it takes nerves of steel to invest in bboz because of the losses that quickly mount if the market goes up. There have been many opportunities to make a great return, but our market has been hard to predict, going sharply down and then up, so you make a killing then lose more than that in the same day.
I am about even, but I am not as willing to risk it as I was. I am trying to figure out what a trigger is, but sometimes we go down and the US goes up and vice versa so I can't say that if the US overnight goes up that we will the next day like I was hoping. However in major crashes there seems to be plenty of time to get in and reap rewards, but you need cash at the time. I have cashed out because it is too volatile for me at present, so I will sit and wait. Luck will play its part I am sure, both good and bad.