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So many ways... For small timers: inverse ETFs, put options, CFDs (for non-US folks) For big timers: the above plus: short futures, OTC options, equity swaps, C

So many ways... For small timers: inverse ETFs, put options, CFDs (for non-US folks) For big timers: the above plus: short futures, OTC options, equity swaps, CDS, plus anything bespoke you can afford

rsync 11y ago
I haven't looked into it in years, but my recollection is that you don't buy the inverse ETF, you short the corresponding long ETF. That's because there is inherent "decay" in the price of the ETF - if the market just keeps going sideways, the ETF slowly trends downward over time. So if you buy the inverse ETF and the market doesn't go up at all, you still don't have a profitable trade - you should short the long ETF. Is that still the case ?
- um_ya 11y ago
  Or, just buy the ETF that preforms well when there is an economic downturn. Possibly GDX and GDXJ (gold mining ETFs).
  - rsync 11y ago
    No, you're missing the point. If my understanding is still current (I suspect it is) these ETFs "decay" over time. Which means you can be "right" but if what you're right about doesn't happen fast enough, you still lose money. That's why people suggest shorting the ETF that is opposite your prediction.