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If someone really wanted to do this, you would short GOOG or FB and long the nasdaq (QQQ) by a proportional amount. This position insulates you against the mark
by mathgenius 6y ago
If someone really wanted to do this, you would short GOOG or FB and long the nasdaq (QQQ) by a proportional amount. This position insulates you against the market bulls, which could go on pumping the market for several more years. It's a bet that GOOG & FB will underperform the tech sector more widely.
Maintaining a short position also costs money, so this is a further complication. As a retail investor, I don't know if there are any instruments for shorting these big tech co's. I'm guessing that you can do it on interactive brokers (for example) if you post enough margin. DYOR.
- oh_sigh 6y agoHow would you do it if you were working for Microsoft and weren't legally allowed to transact with Microsoft stock because of a trading blackout period?
- mathgenius 6y agoYikes.. If buying QQQ is counted as "transacting with microsoft stock" then you could try finding a basket that didnt have microsoft. I'm not an expert in this stuff, but for example the Russell 2000 fits. It would be better if it was a tech/internet related basket. EDIT: here's a better idea. Just buy apple and/or half a dozen other big tech stocks that you like!
- esrauch 6y agoGenerally the "quiet period" while employed at big tech cos doesn't include index/mutual funds even though they technically include the company.