Stocks plunged this morning as short-term yield rates surged. Stocks that would suffer the worst in a recession, such as consumer discretionary and tech, led the losses ahead of the Federal Open Market Committee’s 2-day policy meeting, which kicks off tomorrow. The Fed is expected to announce a 50 basis point rate increase, though some economists are now calling for a 75 basis point rate hike this week after May’s hot CPI reading. Â
Tech stocks have had an especially tough year as recession fears rise along with inflation. The Nasdaq Composite is deep in bear market territory, down 30% from its November 2021 ATH and 27.5% lower so far in 2022. Â
Given the sluggish backdrop for high-priced tech stocks, bearish investors may want to go near-term short on the Nasdaq. Today we’ll highlight the method 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. Â
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 helpful 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  1.11B
- 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?
Click here to watch his presentation, and decide for yourself...
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.
Click here to find out the name and ticker of Keith's #1 pick...
