The Infamous Four: The Top Four Worst Long Time Buys on the Market Today

#1 Direxion Daily S&P 500 Bear 3X ETF (SPXS)

The┬áDirexion Daily S&P 500 Bear 3X ETF (SPXS) ‘seeks daily investment results, before fees and expenses, of 300%, or 300% of the inverse (or opposite), of the performance of the S&P 500 Index’. Given the strength of the American economic system — the fostering of innovation and meritocracy, the respect for the rule of law, and all the talented people who work hard to make the world a better place, productivity will likely continue increasing in the long run. As long as there is a Fed, inflation will likely increase too. Factor in population increases and stock buybacks and it’s very reasonable to conclude that going long a low cost S&P 500 index fund like VOO (Vanguard 500 Index Fund) for the long term is a good bet. The S&P’s strength thus makes shorting the S&P 500 by 3x arguably the worst bet in the long term.

As always, anything can happen in the short term however, and SPXS could be a good bet in some time lines.

Don’t forget to sign up for our free newsletter using market maker sentiment below. Volumebot is a website that shows market maker sentiment using the latest short volume data reported to FINRA. Short volume isn’t the same as short interest but can nevertheless be useful.

 

Disclosure: the author does not own any security mentioned.