You're just not feeling it anymore.Everywhere you look, the stock market seems overvalued. Companies are still at or near 52-week and all-time highs. Then the warning shots were fired across our collective bows on Feb. 27 and March 13. There's too much debt, too much risk and anxiety, too many geopolitical uncertainties. So how do you make money now? How do you hedge your bets and still get to
- Unlimited downside risk
- Requires a margin account and borrowing shares on margin
- Lender is reimbursed for dividends
- If it's an individual stock, you can guess the market right and still lose
- You're buying a security. No margin, no interest, and your risk of loss is limited to the value of that security. So this offers peace of mind.
- You get leverage. Especially with the ultras, you tie up relatively little investment capital to hedge a downturn. This enables individual investors to play like the big boys.
- You're diversified. You aren't vulnerable to the "news risk" for a particular stock. And you can work the market -- or a market sector -- with one play.