Defend against market downturn

Average investors usually use buy low and sell high in the market to earn the profit. However, in sudden market downtrend, they normally hold on their positions and suffer the paper loss.

Recent crisis in Euro zone has spread around the market worldwide; rumour about the sudden dried-up of liquidity in Euro zone and trading system glitch have triggered massive sell off in Wall Street. We might now heading for short term correction.

Under this scenario, how do we defend ourself against the downturn? Shorting the market seems as good choice, but it might be too sophisticated for average investors, and high risk as well. Another choice is to go for inverse ETFs.

ProShares and Direxion offer a range of inverse ETFs, allowing the investors to hedge against the downturns, or seek profit when markets decline. The funds also provides the investors with even more exposure through the leverage. Under current situation, betting against financial sector seems like a good choice, allowing investors profit when financial sector index declines, and vice versa. Look up for ProShares Short ETFs and Direxion Bear Funds.

For more information, please visit for more information:

http://www.proshares.com/

http://www.direxionfunds.com/products.html