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- Right, I mean, Bob mentioned ETFs earlier, and they're great for broad based exposure, but I think the environment that we're in, you really want to be looking for the jewels.

- How would you want to play a reverse ETF strategy in this kind of market?

- Now, we have a few of those in our Trifecta portfolio.

- Oh, you got a few of those?

- We're using those, and frankly, they serve a purpose, and obviously, as Chris just said, cash is a great defensive play, but using those inverse ETFs is gonna to dampen your volatility in your portfolio. It's not necessarily gonna be a winner for you. I mean, if you'd end up winning, God help us. The market's probably getting poleaxed to the downside, but if we have certain situations like we had in December, where the markets are down 10%, 12%, those things are going to cushion your blow. I think our portfolio, Chris, was barely down in December when everybody else was getting hammered.

- Yeah, I mean, we were sitting there. If you remember Bob, we were talking on the phone. It was September-ish, and we were getting ready for the upcoming earning season, and we just ticked off the number of risks that the market was facing, and that's when we started to add more inverse ETFs and it proved to be very, very, very helpful to the portfolio because we easily beat our benchmark for the year, really closing that gap between October, November, and December.

- Right, and without too many positions in our portfolio, raised a lot of cash and all--

- Yeah, well, we saw what was coming.

- That's right.

Happy Wednesday. Not.

The Dow starting the day off in RED, again.  But, quickly returned to the green.

With so much volatility, what's an investor to do?

TheStreet is unlocking a recent webinar with with Chris Versace and Bob Lang, co-portfolio managers of Real Money's Trifecta Stocks. They sat down with London Bureau Chief Martin Baccardax and explained how to play reverse ETFs.

Editor's Note: Recorded March 2019.

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