Investment advisers would normally have their long stocks picked through whatever strategy they may be pursuing. I’m not here to talk about the long stocks. Im here to discuss with you the short side of your portfolio, most Investment advisers have roughly 10% of major investment portfolios backed up with stocks that go up when the market goes down. These are called hedges. With the latest rally in the market the short ETF’s that I like to track are getting cheap and I wanted to talk about them a bit.
SQQQ is trading near all time lows. SQQQ is triple inverse stock so when it goes it shoots up like a rocket ship. Established in February 2010 by ProShares, the UltraPro Short QQQ (Nasdaq: SQQQ) is an inverse-leveraged exchange-traded fund, or ETF, that tracks the Nasdaq-100 Index. … This means investors in SQQQ are preparing for the greater nonfinancial stock market to struggle.
TVIX is the other stock that I use as a hedge. TVIX tracks two times the daily performance of the Standard & Poor’s 500 VIX Short-Term Futures Index. It is enticing because it has the potential to give you massive returns in a very short period of time. So this isn’t necessarily the short side of the market it tracks volatility which is a indication of selling.