Inverse funds are a great hedge to use during a down market - like the one we're staring down the barrel of. When the market is flying high, you can pick up shares of inverse funds for cheap. And then, while everyone is panic-selling, you can take profits on your hedge. Let's look at some other examples of inverse funds... These inverse funds have all celebrated gains while their corresponding benchmarks have gone down the toilet to start the year. The ProShares UltraShort Utilities ETF (NYSE: SDP), ProShares UltraShort Financials ETF (NYSE: SKF), ProShares UltraShort Dow30 (NYSE: DXD), ProShares UltraShort S&P 500 (NYSE: SDS) and ProShares UltraPro Short QQQ ETF (NYSE: TWM) are just scratching the surface of the opportunity available to you with inverse funds... and what you can gain while everyone else loses. It's important to remember that these are short-term trades, though. The markets ultimately move in one direction, and that's up. So a long-term bearish bet would be harmful to your nest egg. Always Have a Backup Plan When the markets tank - as they are wont to do on occasion - you don't have to go down with the ship. A few small investments in inverse funds and other hedges - like precious metals, bonds, Treasurys and certificates of deposit - can be your lifeboat. Regardless of what's happening in the world, it's a good idea to hold some bearish plays in addition to your bullish ones. Because when there's already blood in the streets, it's too late to plan ahead. Good investing, Rebecca P.S. We would never have seen nationwide 5G coverage without a device from one small California-based company. Its tech is revolutionary. And the company has already added big names such as AT&T, Verizon and T-Mobile to its customer list. This is the only 5G stock you need to own... And right now, it's trading for just $5. Get the details here. |
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