Profiting From Inverse ETFs In Bear Markets by Leslie N. Masonson
When the market heads down, there are still ways to profit that don’t require taking an outright short position. Here’s a look at some of the inverse ETFs available, how they have performed, and what risks are involved.
The current bull market has had a terrific run since its launch on March 9, 2009. Since then, through October 12, 2018, the major market averages have risen between 283% (DJIA) to 477% (Nasdaq Composite), with the S&P 500 advancing 303%. Inevitably, a bear market will occur, since stock markets always experience boom and bust cycles. The key to profitable investing is to be ready beforehand with a defensive strategy when the market trend starts to turn down ...