Reverse ETF S&P 500

I mentioned in a previous article that I thought the market would pull back some during the summer months. It looks to be the case, with the recent turn of events. A pull back was to be expected after such a rapid run up in stock prices. Barron's had an interesting article on this at:


http://online.barrons.com/article/SB124579457810443905.html?mod=googlenews_barrons


This is usually the time of year when I take advantage of lower stock prices to add to my long term holdings, reducing my average price per share and increasing dividend income. As a new tactic, I've decided to invest in a reverse ETF or exchange traded fund called Short S&P 500 ProShares (ticker symbol: SH). In theory, a reverse ETF shorts the market and should move in the opposite direction of the stock market. In this case, since I expect the market to go down some, the shares in SH should move up, balancing out my portfolio. This is a way of shorting the market with less risk than opening a margin account. I'll keep readers posted on how it works out.

Re-invested in Universal Insurance (UVE) for my regular portfolio on price pull back, looking to add more shares if the price goes lower. Also added Calumet Specialty Products (CLMT) as a long term holding for their dividend payout. Not much going on with my recent purchases in energy limited partnerships, but with the good dividends, I can afford to wait for upward movement with those.