Harry S. Dent Jr., of HS Dent Investments, advised subscribers to his Monthly Economic Forecast on Friday, September 11, 2009, that it’s time to start moving out of financial markets and into safer asset classes:
The markets could obviously continue to edge up if there continues to be an absence of bad news, but our last positive 10 month cycle is peaking here in mid September and all other cycles point down from around September 2009 into around October 2010. All things considered this looks like the best place to sell stocks and to short the S&P 500 (SH) for more aggressive investors. Such a short position should be held as long as the Dow doesn’t break above 10,000.
My Comments:Â Harry Dent also suggests that the US Dollar may start staging a rally over the next year, so US Dollar bull ETF’s and US Treasuries may be the best place to park your money in the event of a downturn in equities.
Please note that if you are taking short positions against the S&P 500 via inverse ETFs that Mr. Dent has suggested the Proshares Short S&P 500 (ticker = SH) exchange traded fund. This is an unleveraged inverse ETF designed to match the daily percentage moves in the S&P 500. More aggressive traders might also consider the Proshares Ultrashort S&P 500 ETF (SDS) which is designed to track the S&P 500 by 2 times on a daily basis. Leveraged ETFs like SDS, SRS (Inverse Real Estate), TWM (Inverse Russell 2000), SKF (Inverse Banking sector)Â carry added risks, so set your stops and pay close attention to your positions.
Mr. Dent’s analysis
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