This post is part of a special annual report -- Top Stock Picks '09 -- in which TheStockAdvisors.com asked 75 leading newsletter advisors to select their favorite investment for the new year.

For those comfortable with a short position, Mike Larson looks to ProShares Trust Short Financials (NYSE: SEF) as his top 2009 pick. In Money and Markets, he looks at the inverse ETF.

"ProShares Trust Short Financials is an inverse exchange-traded fund. The ETF is designed to rise in value when the underlying index it references, the Dow Jones U.S. Financials Index, declines.

"As of September 30, the Dow index was weighted 42.5% in banks. General financial firms were the next highest weighting at 23.4%, followed by Real Estate Investment Trusts at 13.4%, non-life insurers at 13.1%, and life insurers at 6.9%.

"The top companies in the index were JPMorgan Chase (8.1%), Bank of America (8.1%), and Wells Fargo (5.9%).

Continue reading Top Stock Picks '09: ProShares Short Financials (SEF)

Top Stock Picks '09: ProShares Short Financials (SEF) originally appeared on BloggingStocks on Fri, 09 Jan 2009 10:00:00 EST. Please see our terms for use of feeds.

"We see the growing risk of a watershed decline very soon," warns Martin Weiss, editor of The Safe Money Report. For those looking to speculate on a downside move, or to hedge an otherwise long portfolio, the advisor looks at several inverse ETFs which benefit from a drop in stocks.

"With a new, potentially bigger wave of the credit crisis sweeping Wall Street, and with the latest energy price surge gutting corporate profits, the U.S. stock market is poised to suffer a far sharper and deeper decline.

"Our near-term forecast: A rapid fall - perhaps including a crash - to the market's 2003 lows: 7200 on the Dow, 770 in the S&P 500 Index, and 1100 in the Nasdaq Composite Index.

"That's too much, too fast for you to just 'ride it out' as many on Wall Street are recommending. oreover, it's too soon to say if those levels will be the final bottom; the market could fall even further.

"With the exception of of selected resource companies, we recommend unloading nearly all stocks. In addition, we suggest buying inverse ETFs, which rise in value when the market falls. Here are our highest priority recommendations:

UltraShort Real Estate ProShares (ASE: SRS)
UltraShort Technology ProShares (ASE: REW)
Short Dow 30 ProShares (ASE: DOG)
UltraShort Consumer Services ProShares (ASE: SCC).

"These four are inverse ETFs - exchange-traded funds that you can buy and sell just like any other ETF or stock, but with one critical difference: They go up in value when the market index they're tied to goes down. And we think they're ideal for this situation."

Each day, Steven Halpern's TheStockAdvisors.com offers the latest market commentary and favorite investment ideas from the nation's leading financial newsletter advisors.

Inverse ETFs: Four ways to bet on a market decline originally appeared on BloggingStocks on Mon, 28 Jul 2008 10:10:00 EST. Please see our terms for use of feeds.