ProShares, a leading provider of inverse and leveraged ETFs, has filed for approval on seven addition ETFs, including four “ultra” international ETFs and three products focusing on a popular regional bank index. The international ETFs complement four existing 200% inverse products, and include:

• Ultra MSCI Brazil: Seeks daily returns equal to 200% of the daily returns on the MSCI Brazil Index.
• Ultra Pacific ex-Japan: Seeks daily returns equal to 200% of the daily returns on the MSCI Pacific ex-Japan Index.
• Ultra MSCI Europe: Seeks daily returns equal to 200% of the daily returns on the MSCI Europe Index.
• Ultra MSCI Mexico Investable Market: Seeks daily returns equal to 200% of the daily returns on the MSCI Mexico Investable Market Index.

In June 2009, ProShares launched UltraShort products that seek to deliver 200% of the inverse of daily returns of the same four indexes. iShares currently offers ETFs designed to replicate the performance of three of these benchmarks, including EWZ (Brazil), EPP (Pacific ex-Japan), and EWW (Mexico). The Vanguard European ETF (VGK) is linked to the MSCI Europe Index.

Last Wednesday the markets were comforted by Fed chairman Ben Bernanke’s comments that the US economy is in a nascent recovery that requires interest rates to be kept low. Banks are breathing a sigh of relief that the recent rise in the discount rate will not lead to a significant rate increase. Even the Fed will begin to tighten in the near future, and the yield curve remains very steep, meaning the difference between short and long term rates is very wide.

Yield-seeking investors have traditionally looked at big banks to boost income, which used to offer solid balance sheets with good cash cushions and nice dividend yields. The financials have recovered somewhat. However, after the recent meltdown, this sector still leaned heavily on government support in order to survive. It is unlikely to restore juicy dividends soon. In addition, banks have to be in capital preservation mode because new regulations might require them to hold higher levels of T1 capital ratio.

I found this past weekend a good time to blend some advice with news and analyses. Given current market conditions, not to mention what I do for a living, the most important piece of advice is to start looking at the short side of things - of anything - of everything.

Why?