Blog Post

I expect the portfolio to do better in down markets and maybe not as good as the overall market in good markets.  Over the long-term, the portfolio will hold up well. I'll be able to test this idea here on Covestor.   My bet is that my ranking will go up for similar reasons.  You'll notice from now on that I will get more and more short exposure via ETFs.  I'm doing this to take out what I think of as administrative risks associated with my broker.  When you short individual stocks there is always the risk that your broker won't be able to keep borrowing the stock for you.  This has happened with my broker twice.  It's hard for me to believe that a big  short seller like Jim Chanos has this problem. I thought about this and figured that a bigger broker lessens this type of risk so I will mitigate this risk by 1) using inverse ETFs to get short exposure and 2) switching brokers. The latter will not happen for a while. 

I much prefer to short individual stocks.  I think your chances of finding a bad company are much greater than finding a bad sector.  But you do what you have to do obtain the best results.