These products do well in trending markets. They offer great upside potential. If you believe markets will generally rise over time — and agree that times of high volatility are infrequent and short lived — you can believe that these products will work for you.
Minimize Potential Effects of a Correction
Investors can also consider various tactical trading strategies to minimize potential effects of a correction in an extended bull market environment.
For instance, the Direxion Daily S&P Oil & Gas Exploration & Production Bull 3x Shares (NYSEArca: GUSH) and Direxion Daily S&P Oil & Gas Exploration & Production Bear Shares (NYSEArca: DRIP), which take the +/-3x or +/-300% daily performance of the S&P Oil & Gas Exploration & Production Select Industry Index, can help traders gain exposure to the swings in the crude oil industry after oil prices plunged and seek to consolidate in light of ongoing concerns over a global supply glut.
Additionally, the Direxion Daily 20+ Year Treasury Bull 3x Shares ETF (NYSEArca: TMF) and Direxion Daily 20+ Year Treasury Bear 3x Shares ETF (NYSEArca: TMV), which tracks the 300% long and short daily performance of the NYSE 20 Year Plus Treasury Bond Index, respectively, have been popular ways to more aggressive exposure to the shifts in the Treasury market. With the Federal Reserve embarking on interest rate normalization and a tighter monetary policy, bond traders should be wary of the potential ramifications after a three-decade long bull run in the fixed-income space.
Financial advisors who are interested in learning more about investment strategies for today’s markets can register for the Tuesday, June 19 webcast here.
