There’s a chance the stock market rally is over and the long-awaited correction is here. If so, astute investors can hedge their portfolios or even profit from a market sell-off.
This can be done with inverse ETFs. These ETFs are designed to move in the opposite direction of the market. One of them is the ProShares Short S&P500 (NYSE:SH).
This ETF is designed to move in the oppositive direction as the S&P 500 Index. For example, if the S&P 500 falls by 2%, SH should appreciate by about 2%.
As you can see on the following chart, now that the S&P 500 seems to have broken its recent uptrend, SH seems to have broken its recent downtrend.
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