Out at the peak

Monday, February 27, 2006

Support SLV (Silver ETF)

SEC Form

Silver Association Petition


  • RE: Our earlier discussion of ProFunds. I received a reply from the Director of Shareholder Services, re. my SEC complaint. In the letter, he states the fund disclosed its holdings in its annual reports, and there has not been one issued since the inception of 9/12/2005. He states the company filed form N-Q on 11/29/2005 with the SEC, and this includes the fund's holdings. Attached is the section for the Short Real Estate Fund:

    Short Real Estate ProFund

    Schedule of Portfolio Investments

    September 30, 2005



    Repurchase Agreements (101.3%)

    UBS*, 3.55%, 10/3/05, dated 9/30/05, with a maturity value of $21,603,389 (Collateralized by $22,124,000 Federal National Mortgage Association, 3.833%, 11/9/05, market value $22,029,779)
    $ 21,597,000 $ 21,597,000

    Total Repurchase Agreements (Cost $21,597,000)

    TOTAL INVESTMENT SECURITIES (Cost $21,597,000) - 101.3%
    $ 21,597,000

    Percentages indicated are based on net assets of $21,310,733.

    * All or a portion of this security is held in a segregated account for the benefit of swap counterparties in the event of default.

    Swap Agreements

    Appreciation (Depreciation)

    Equity Index Swap Agreement based on the Dow Jones

    U.S. Real Estate Index expiring 10/25/05 (Underlying notional amount at value $21,301,650)
    (84,236 ) $ (516,173 )

    See accompanying notes to the Schedules of Portfolio Investments.

    I still can't tell what they actually hold, can you?

    By Blogger mtnrunner2, at 12:05 PM  

  • Theoretically it should be the shorts of Dow Jones Real Estate Index. This ETF might not be precise, but it is probably close. The scary thing about this is that is has a 4% yield with REITs.

    I didn't mean to bet against REITs as they have an advantage with the dividends.

    Are you still looking at stock options? They are risky as they lose value as you approach expiration date unless you actually get ITM (in the money). The good money is more likely to be in option writing which is the riskiest thing you can do if you don't own the equity.

    You really want to practice with a simulator like the one on www.zacks.com

    By Blogger Out at the peak, at 7:14 PM  

  • I don't know enough about investing to get into options, I now realize. I need to consider which companies do well during recessions, and find some that are valued with P/Es less than 10. Perhaps foreclosure businesses, auction houses, storage/moving. Companies invest in productivity hardware/software, as they try to rein in overhead costs. I need to research who did well in past recessions.

    By Blogger mtnrunner2, at 9:27 PM  

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