The U.S. Stock Market Taking a Dip

in #investing7 years ago

The U.S. Stock market is taking a dip these past couple of days after Trump's announcement of Steel Tariffs and both the world and U.S. Investors reacting to possible inflation concerns.

With a record bull run on the books and All Time Highs threatening to retreat, now is a good time to review and rebalance your stock portfolio. I for one believe the bear market is just around the corner despite a very, very healthy outlook from American corporations and their recent round of earnings reports.

One

To that end, I decided to take a relatively small position in ProShares Ultrashort S&P 500 (SDS). This is a long position as when the market may truly turn bearish is not clear. For now, I'll likely start DCA'ng into SDS and other inverse ETF's.

Yes, the recent dip in February was blamed on just such instruments, and it was a news article covering these instruments that alerted me to their existence. But as I understand it, these were foolish investors betting borrowed money many moons ago who were finally forced to liquidate their positions. So I'm not really sure such scenarios even apply to me entering SDS with my own cash.

This is my first ever short on the stock market. I'd love to hear those with more experience shorting what their takes are.

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