BBOZ - BetaShares Australian Equities Strong Bear Hedge Fund

[peter2]

Considered BBOZ for the Sept comp but then I sobered up. While I understand the attractiveness of these inverse ETFs I can't help but feel "unclean" when considering a short term position. My skin crawls thinking about it.

This could be that I'm bullish on the market most of the time. Even when bearish I'll just wait it out or short an index rather than consider a BBOZ trade.

Note: I do hold a BBUS position but I'm more bearish on the US than the ASX. Like gardening, I'm resigned to getting dirty holding this inverse ETF.

 

[divs4ever]

sometimes you need to get down in the weeds

but yes given the widespread unrest ( and upcoming elections in some places )

you have to wonder when there will be more QE , or stimulus , debt forgiveness , subsidies ( etc etc , ie more excuses to flood the market with cash )

will they do it , why not ??
sticking a band-aid on an amputated leg is the treatment they know best

i hold a few BBUS ( still deep under-water ) am more likely to wait for under 6000 ( for the XJO and start nibbling at GEAR this time ( in the dips )

 

[divs4ever]

bought ( back ) into BBOZ a few minutes back

it is currently at a 12 month low of $3.28 ( which was my buying price )

take care

getting these reverse index ETFs wrong can hurt ( a fair bit )

 

[divs4ever]

according to Commsec ( charts ) $3.28 is an all-time low

 

[mullokintyre]

I have added BBOZ to the portfolio today.
I can see some bearish times heading our way.
mick

 

[arco]

Yes agree.
I also picked up some BBOZ a few days ago.

 

[Sean K]

BBOZ has been a good long term hedge.

Would be hard to time it right even mid term.

 

[qldfrog]

BBOZ has been a good long term hedge.

Would be hard to time it right even mid term.

View attachment 161068View attachment 161069

Very hard to make profit with this one indeed, I then switched to a Vix related ETF in the US, worked well for a while but then disappeared and was not an option(choice) for me in Australia.
Not playing market or systems since May so I kept a few gold ETF as an edge instead

 

[divs4ever]

Would be hard to time it right even mid term.

managed that in the lead up to 2020 ( starting in September 2019 ) ( along with BBUS and BEAR )

understood the 2020 'recovery ' was all about picking winners , and have resisted 'inverse index ETFs since ( but still carry some badly timed BBUS )

maybe if markets were to became free again

 

[Sean K]

managed that in the lead up to 2020 ( starting in September 2019 ) ( along with BBUS and BEAR )

understood the 2020 'recovery ' was all about picking winners , and have resisted 'inverse index ETFs since ( but still carry some badly timed BBUS )

maybe if markets were to became free again

When Covid just started in China I was fill-in managing a gym as a favour for a mate. Most of his members were Asian students back home over Xmas between terms. I said to him, you need to keep an eye on this, you might not get all your members back from Asia. Little did we know it would shut down the gym for almost 2 years. If I was full time investing at the time I would have thought, now might be a good time to buy some BBOZ. Maybe when China invade Taiwan I might think the same.

 

[divs4ever]

the market ( Oz and US ) looked illogically overvalued during Repo Madness so kept nibbling BBOZ , BBUS and BEAR in the rally up to March 2020 , conversely i believe i came done with the virus Xmas Day in 2019 , but the GP went on holidays there no tests i hadn't been the China since 1991( well actually only Hong Kong ) so it couldn't possibly be .... but was rather ill at the time

BTW China does not have to invade Taiwan it simply only has to cease all trade with them , maybe even blockade all large ships to Taiwan ( too hard to stop the fishing boats ) China is already restricting exports of commodities critical to processor manufacture

no chips equals no US interest , and Taiwan plummets into a 3rd world economy or finally agrees to become a state governed by China as per the UN charter on China agreed on in the 1970s as China joined the UN Security Council

the US should remember it generated a LOT of animosity with China during the Opium Wars ( and the folks in Hong Kong still remember vividly )

BTW Sun Tzu suggests that one wins the war first and THEN go into battle ( and Xi is a general's son )

 

[Sean K]

BTW China does not have to invade Taiwan it simply only has to cease all trade with them , maybe even blockade all large ships to Taiwan ( too hard to stop the fishing boats ) China is already restricting exports of commodities critical to processor manufacture

no chips equals no US interest , and Taiwan plummets into a 3rd world economy or finally agrees to become a state governed by China as per the UN charter on China agreed on in the 1970s as China joined the UN Security Council

the US should remember it generated a LOT of animosity with China during the Opium Wars ( and the folks in Hong Kong still remember vividly )

BTW Sun Tzu suggests that one wins the war first and THEN go into battle ( and Xi is a general's son )

Agree, but first signs of it really getting out of hand and I'd have my finger poised on the buy button.

I think the Sun Tzu quote is 'to win without fighting is best'.

 

[divs4ever]

I think the Sun Tzu quote is 'to win without fighting is best'.

so my sifu says

 

[Sean K]

so my sifu says

I think Gordon Gekko used the one 'every battle is won before it's ever fought'. Bud Fox tried one later after trying to pick up Darian at the beach house and negotiating with Sir Larry which made no sense at all.

 

[IvoryWolf]

This one is a 'tough nut' to crack, but for those who feel that the market is not out of the woods yet, BBOZ may still be worth a look in the portfolio, considering the recent developments of the gap up from mega-cap NVIDIA after earnings and essentially ending the day flat and taking the rest of the market with it. Further explanation of the recent chart action is available in the video below, prepared at the end of the week of 18th August 2023.

 

[Captain_Chaza]

This one is a 'tough nut' to crack, but for those who feel that the market is not out of the woods yet, BBOZ may still be worth a look in the portfolio, considering the recent developments of the gap up from mega-cap NVIDIA after earnings and essentially ending the day flat and taking the rest of the market with it. Further explanation of the recent chart action is available in the video below, prepared at the end of the week of 18th August 2023.

What's the Point of Data which was Long Ago?
Is it a Typo?

 

[divs4ever]

This one is a 'tough nut' to crack, but for those who feel that the market is not out of the woods yet, BBOZ may still be worth a look in the portfolio, considering the recent developments of the gap up from mega-cap NVIDIA after earnings and essentially ending the day flat and taking the rest of the market with it. Further explanation of the recent chart action is available in the video below, prepared at the end of the week of 18th August 2023.

i did nicely with BBOZ ( and BEAR ) in September 2019 to March 2020 but noticed in the chaos that followed some governments were 'picking winners ' ( saving systemically important companies )

please allow for that risk factor to be implemented again ( say save the BIG 4 banks and allow the small rivals to fold ) that would really warp the XJO andXAO and personally will wait for the train-wreck and then look at GEAR and MVW for entry prices

 

[IvoryWolf]

What's the Point of Data which was Long Ago?
Is it a Typo?

Hi @Captain_Chaza - the data presented isn't from that long ago, it's from the week ending 18th August 2023, which is at the end of the last week (one trading week ago) and the closing price of BBOZ was $3.57 on 18th August compared to $3.60 on 25th August. Not much difference after fairly much consolidation during that trading week.

i did nicely with BBOZ ( and BEAR ) in September 2019 to March 2020 but noticed in the chaos that followed some governments were 'picking winners ' ( saving systemically important companies )

please allow for that risk factor to be implemented again ( say save the BIG 4 banks and allow the small rivals to fold ) that would really warp the XJO andXAO and personally will wait for the train-wreck and then look at GEAR and MVW for entry prices

Hi @divs4ever - terrific advice to consider, thanks! GEAR and MVW are great vehicles for 'recovery mode' in the event of market failure, I completely agree.

 

[mullokintyre]

I have added BBOZ to the portfolio today.
I can see some bearish times heading our way.
mick

Took the original purchase off the table today.
12% gain for six months holding is fine by me.
Will put it into something that has fallen a lot today.
Mick

 

[divs4ever]

Took the original purchase off the table today.
12% gain for six months holding is fine by me.
Will put it into something that has fallen a lot today.
Mick

nice .. i wouldn't have had the nerve to hold them for six months in the last two years

well done