Stocks were mixed to start the day as the market processed corporate earnings from major names. Meta Platforms (FB) plunged more than 27% after reporting weak quarterly results yesterday, weighing heavily on markets. The Nasdaq saw its worst day since September 2020 yesterday, sinking 3.7%. The S&P 500 and the Dow dropped 2.4% and 1.5%, respectively.
“The sharp drop in FB market cap today and the accompanying drag on the S&P 500 is a stark reminder of the high concentration of mega-cap Tech stocks in the S&P 500 – and the vulnerabilities that such concentration brings,” Goldman Sachs’ Chris Hussey said in a note.
Before the bell on Friday, the Nasdaq was up 0.5% on the week, while the S&P 500 and the Dow had each gained around 1%. It’s anyone’s guess where we’ll close the week.
The major indices are all down for the year, with tech shares suffering the most. The technology-heavy Nasdaq composite is down more than 12% in 2022. Bearish investors may want to go near-term short on the Nasdaq- 100 Index, given the sluggish backdrop for high-priced tech stocks.
Today we’ll highlight the method that many of the pros on Wall Street use for doing just that. However, you don’t need to be a professional to employ this tactic.
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The ProShares Short QQQ (PSQ) fund offers inverse exposure to an index comprised of the 100 largest nonfinancial securities on the NASDAQ, making it a potentially attractive option for investors looking to bet against this sector of the U.S. economy.
It’s important to note that PSQ is designed to deliver inverse results over a single trading session, with exposure resetting every month. Investors considering this ETF should understand how that nuance impacts the risk/return profile and realize the potential for “return erosion” in volatile markets. PSQ should definitely not be found in a long-term, buy-and-hold portfolio but may be a useful tool for more active investors looking to either hedge existing exposure or bet on a decline in the top nonfinancial NASDAQ securities.
ProShares Short QQQ (PSQ) Data Summary
- Net Assets 478.22M
- Expense Ratio 0.95%
- Average Daily Volume $60.72M
Where to invest $1,000 right now...
Before you consider buying PSQ, you'll want to see this.
Investing legend, Keith Kohl just revealed his #1 stock for 2022...
And it's not PSQ.
Jeff Bezos, Peter Thiel, and the Rockefellers are betting a colossal nine figures on this tiny company that trades publicly for $5.
Keith say’s he thinks investors will be able to turn a small $50 stake into $150,000.
Find that to be extraordinary?
But you have to act now, because a catalyst coming in a few weeks is set to take this company mainstream... And by then, it could be too late.
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This pill is set to completely change the lives of millions of Americans.
And because just one tiny Brisbane company has virtually monopolized this technology with 140 foolproof patents…
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