Hello you amazing people that make up this forum and very intelligent people. Hope you’re well.
I have been researching lately that the US stock market is in a bear market, due to the rising interest rates that the Fed are imposing. I note there is some interesting ETFs such as ProShares UltraPro Short QQQ ETF that benefit from a decline in the markets. Do you kindly think it would be worthwhile investing in this please? Further does anyone kindly have any other ETFs or strategies to make money in a bear market please, i would be forever grateful for any advice you can give.
Thank you very much for your support and for reading my post. I do hope you have a lovely weekend.
In my opinion, the best risk/reward in a bear market is to just buy great business at a discount/fair price. Many companies that could be down maybe another 10-15% before its crazy town undervalued, but once economy turns round and valuations come back even modestly they will be 50-100% higher due to earnings growth in the interim years.
Imo check out the premium / discounts of well run investment trusts, against the dips in the market.
Markets tend to over react to good / bad news, however because investment trusts have a fixed pool of capital, can take advantage of that and hold good companies during a downturn in the market, or buy their own shares at a discount to their market value, and then later sell their own shares at par or a premium to market value.