So I realize that statistically speaking it’s generally a bad idea to time the market. Statistically speaking it’s a good idea to buy a few ETFs that are tracking some of the major indices and this was what I was doing up until recently.
However, the more I study about history of the markets the more I’ve the feeling we’re on the verge of a downtrend in the market.
If I turn out to be correct I’d like to optimize my gains from this speculation while adhering to my risk profile.
To do so, I’ve chosen to sell all the ETFs I owned and purchase ETFs that should rise when the market goes down. I’ve purchased the following:
- ProShares Short S&P 500 ETF
- iShares Gold Trust ETF
- Direxion Dly CSI 300 Chn A Shr Br 1X ETF
Can someone confirm to me that my Short SP500 ETF can’t go bust? I’d like to know exactly how a Short ETF works. I’m assuming their bundled derivative contracts that just get rolled over by the people managing that ETF.
I plan on just holding on to these 3 positions for the upcoming years until this crash happens.
Disclaimer: Consult your financial professional before making any investment decision.