The NASDAQ is the most vulnerable of the indexes when a correction comes. This vehicle shorts it 2x. I would be a buyer at current levels-- under $52. At $50, which it's breached only temporarily, it's a steal.

Small caps have outperformed their larger bretheren considerably over the course of this secular bear. While I believe in finding select small caps to invest in, the index's valuation is simply not sustainable-- correction or no. Like QID, TWM shorts the index, the Russell 2000, x2.

This is a company that will not flinch in a downturn. Timberlands are a great investment in any market, no matter how over or under valued equities are. Given the company's quality timber stands, real estate, and mineral rights, it is largely unaffected by the deteriorating economy. Futhermore, timber historically outpaces equity markets by a substantial margin in bear markets...see J. Grantham's writings on timber for specifics.

Small caps as a whole will get punished in a correction, but that doesn't mean I don't like a few names. IRobot is one of them-- with excellent numbers expected in 2008 (when they roll out several more military products), the company will be a major player in the growing field of robotics for years to come. I'd rather get in now, before some breakthrough sends the shares flying (or another company swallows their military division).