After nearly a decade of growth in the stock market, many believe the "bubble" will soon pop. With trade wars between the US and China looming in the shadows, we may be seeing a reversal in the near future. This stock, FAZ, is a 3X inverse ETF of the financial index. At the height of the 2008 crisis, this stock hit highs of over $100,000 per share. As the market recovered, and the bulls gained momentum, FAZ steadily declined as it should. Now that we are looking at the possibility of a macro trend reversal, the wise choice would be to diversify into hedges that will protect your portfolio in the case of a collapse. The potential upside here is magnanimous. If we wait until the actual reversal takes place, the highest percentage gains will be already booked. It's highly unlikely that we will see significant loses in this ETF, given that we have reached an apparent bottom. The activity that i've seen, including the double-bottom bounce, leads me to believe that upside action in the near future is imminent. At only $11.13 per share, a small investment could create very impressive potential returns.
Excellent observation. The chart shows the bowl and its' curvature. I hope the market is ready. Look out below! The real question becomes what will this do to confidence in our currency when everyone recognizes that interest rates have to stay low to save equity values. Hopefully, we can play the comparison game again and be the better of many evils.