IB Net Payout Yields Model

Trade: Bought UltraShort Real Estate

Based on the weakness in the stock market from Obamamania and China banking restrictions, we bought some protection for the Growth and Hedged Growth portfolio today. The UltraShort Real Estate (SRS) was the selection for this hedge. Assuming the market craters thru strong resistance in the 1,085 level, SRS should see huge gains. In addition, the constant slamming of the banking system by Obama should help doom this industry as banks slow lending and commercial real estate companies lose the ability to roll over massive amounts of debt.

Now we're not completely set that the market is about to rollover, but SRS should provide us some protection in case it happens especially with the timing of the Obama State of the Union speech Wednesday night. This trade will likely only be kept for the week unless the situation changes.

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