The 2021 reopening of the U.S. economy has been marked by continual highs and lows. Financial markets have mostly benefited from unprecedented fiscal and monetary support. However, markets appear to be at a crossroads, buoyed by gains over the past 18 months but facing new uncertainty entering the final quarter of the year.
As traders face the fits and starts of the economy’s reopening and unprecedented stimulus spending, they also must balance the threat of inflation, possible new taxes, and unexpected supply shortages in goods ranging from semiconductors to diapers.
In the upcoming webcast, Q4 Fall Back or Ramp Up? A Trader’s Guide for the Road to 2022., Direxion’s managing director and head of product, David Mazza, and Gianni Di Poce, president of The Mercator will help outline the road ahead for U.S. traders and highlight tactical trading tools to capitalize on the potential market shifts.
For example, the Direxion Daily S&P 500® Bull 3X Shares ETF (SPXL) has helped investors access 3x or 300% the daily performance of the S&P 500 as the broad market rallied toward record highs this year.
The Direxion Daily Mid Cap Bull 3X Shares (MIDU), which takes the 300% the daily performance of the S&P MidCap 400 Index, and the Direxion Daily Small Cap Bull 3X Shares (TNA), which tracks the Russell 2000 Index and seeks daily investment results equal to 300% of the daily performance of that index, could provide traders with upside potential should the market experience another rally towards the end of the year.
The Direxion Auspice Broad Commodity Strategy ETF (COM), which provides total return that exceeds that of the Auspice Broad Commodity Index over a complete market cycle, could help investors diversify a traditional stock and bond portfolio, and could also help them access the ongoing rally in the commodities market as the global economy gains momentum and consumes more raw materials.
Traders can also look to inverse or bearish trading tools, like the Direxion Daily 20+ Yr Trsy Bear 3X ETF (TMV), which seeks the daily investment results equal to 300% of the inverse of the daily performance of the ICE U.S. Treasury 20+ Year Bond Index, as a way to hedge against rising rates or falling bond prices as investors grow more anxious over the potential negative effects of a hawkish Federal Reserve and rising inflationary pressures.
Financial advisors who are interested in learning more about investment strategies for the environment ahead can register for the Tuesday, October 12 webcast here.