Profit off The Decline of Fossil Fuels and Decline of Retail Stores During Market Downtrends with Inverse ETFs

Generally, its easier to make money in a bull market. But that doesn't mean there are no opportunities in bear markets.

In today's Video I discuss two ETFs (DDG and EMTY) that essentially allow you to short oil and gas producers and short big box retailers; two industries whose days are numbered.

In bear markets nearly all equities decline in value. Great business will weather market volatility, but you wont make money even investing in great businesses during a bear market. Poorly run businesses and businesses that do not have strong long term outlooks generally fare much worse. Traders can take advantage of this negative momentum by shorting companies that are likely to struggle even in bull markets. That way if the market as a whole recovers you are protected against losses since the industry you have shorted is not going to outperform. Short selling is very risky (your potential losses are unlimited) and require margin accounts. For most retail investors outright short selling is not a wise move.

However, the rise of inverse ETFs provide a means to effectively short a troubled industry, without the risk of unlimited losses or the upfront administrative work of creating a margin account.

Hope this is helpful, Happy trading!

Disclaimer: I am not a financial advisor, these are only my opinions