New UltraShorts Being Introduced for Foreign Markets

Oooohhh, how enticing. For those of you who think the foreign markets are due for a fall, but can't or prefer not to short - here are some ETFs where you will be able to short 1:1 (regular short) or 2:1 (ultrashort) various indexes

This is something that will come in very handy - while these markets are great for the 'long run', with some bubbling going on in foreign markets some nice swift corrections will happen along the way. But the volatility in these names will be enormous so handle with care.

For reference

• MSCI EAFE index: Short (EFZ), UltraShort (EFU)
• MSCI Emerging Markets: Short (EUM), UltraShort (EEV)
• FTSE/Xinhua 25: UltraShort (FXP)

So for example with the iShares Xinhau China 25 falling >6% Friday, the UltraShort would return >12%. In 1 day. And of course vice versa - so please handle with care if you plan on trying these on your own. I think a more valuable "hedge" would be the more broad shorts on the MSCI Emerging Markets - when things get overheated.

Again, the open question is how much will the slowing US economy impact these emerging markets - the debate is open, but it will have an effect. The questions are (a) by how much and more important as an investor (b) when will investors realize it and price the market accordingly?