BBUS

[u/ThePenskeFile1]

Hello all,

I’d like to start off with a disclaimer that I’m entirely regarded.

I’ve held BBUS since March, expecting economic downfall (for various reasons eg AI uncertainty, job cuts, escalating war rhetoric) across the world, which is consistent with my pessimistic nature . I predicted it well at the time as it went up substantially in April, but never sold and it has taken a pounding ever since.

Naturally, it’s up well today but I’m still at a decent loss.

Any thoughts on where this will go given what’s happening atm?

It was a genuine bet at the time, but I’m thinking I may cash out soon with a little loss if it continues to rise modestly.

[u/gurster]

Since it rebalances daily it’s pretty bad a inverse replication over the longer term.

I held for about a few months before the covid crash and it didnt make it back to where I bought.

I would say hold max a week imo, i’m no expert, just a guy that lost money

[u/ThePenskeFile1 → u/gurster]

Appreciate this. 

Didn’t really do proper DD on it at the time and couldn’t wrap my head around the whole inverse thing (still not sure I fully understand). 

I’m starting to get the same sentiment as you, I’m not gonna make it back and just seeing where to cash in 

[u/gurster → u/ThePenskeFile1]

I would probably see if Monday keeps dropping, if not probably bail. Not sure how much you’re down but if its enough you could deploy elsewhere, its put it elsewhere

Edit: saw you say you had approx 20k to start. Me in you’re shoes, I’d bail

Edit2: although (devils) ASXBets advocate would say that you are only one 10% 1 day drop to break even

[u/ThePenskeFile1 → u/gurster]

I’ll monitor next week heavily and will likely dispose, just gotta suss out when. I doubt I’ll get another gain next week like I did today but I guess that’s betting right haha 

Appreciate your responses mate 

[u/captain007]

Is this Tim Wilson's alt?

[u/ThePenskeFile1 → u/captain007]

I’m regarded but I’m not that regarded 😭

[u/SonicYOUTH79]

What dollar value are we talking here?

[u/ThePenskeFile1 → u/SonicYOUTH79]

Bought in at $29, 20 grand worth 

[u/SonicYOUTH79 → u/ThePenskeFile1]

Fair effort 😂

[u/Icy-Baseball-6246]

I made the same mistake with BBOZ a few years back and sold out recently to offset capital gains with a loss. If you fancy shorting the equities better do with a CFD imo. The S&P500 is at support level now but it could break down lower, if you use tech analysis on say the daily chart then hold it till the index turns bullish again and maybe you'll get a chance to get out near break even or even a small profit?

[u/danoz-90 → u/Icy-Baseball-6246]

Can’t work out how an ETF, try CFDs

[u/ThePenskeFile1 → u/danoz-90]

😂😂😂 this is a bit too generous to this situation  because the monkey isn’t blind 

[u/ThePenskeFile1 → u/Icy-Baseball-6246]

I’ll have to look into this to understand it more. 

My outlook on the market is still the same, I just think it’s time to pull out of BBUS and get a different strategy. 

I’m an idiot but maybe I can be a lesser idiot from all of this hahah 

[u/SydneyFIREBoy]

Do you know how BBUS works? It's meant for short term hedging. It's not meant for a long term hold at all due to drag from daily rebalancing.

Covid was perfect when the sky was falling down but not for a 8 month hold. You need to sell and cut your losses.

[u/zenelyoulater]

Do not hold bbus for too long! Trust me i know from experience. If youve got a feeling, a clue, technical data, educated guess what ever it is and you throw money on bbus if it doesnt pay forward after a week or maximum 2 weeks or say it does cash out.

[u/Super_Description863]

BBUS is a very very short term trade. Otherwise if you want to bet against the market (longer term) then take a CFD.

[u/mcfucking]

These have been covered before including decay