Fear is back.
With Afghanistan, rising pandemic numbers, packed hospitals, poor retail sales, and renewed global lockdown concerns, fear is back in a big way. Not helping, July retail sales fell 1.1%, which was worse than expectations for a 0.3% drop.
With regards to the virus, the number of global cases is now up to 208 million, with nearly 4.4 million deaths. In the U.S. alone, there are 36.8 million cases to date, with 622,437 deaths recorded, according to Johns Hopkins.
Worse, “Florida has seen a surge in cases in recent weeks because of the highly contagious delta variant of the coronavirus, which has led to a major increase in state hospitalizations. By next week, 68% of hospitals are expected to reach a critical staffing shortage, according to an Aug. 9 survey by the Florida Hospital Association,” as reported by USA Today.
In short, things are a real mess all around the world.
No wonder the Dow is down about 300 points at the moment.
Until there’s clarity, investors may want to consider hedging for volatility with:
ProShares Ultra VIX Short-Term Futures ETF (UVXY)
The ETF was designed to match two times (2x) the daily performance of the S&P 500 VIX Short-Term Futures Index. The UVXY now trades at just $24.25.
iPath S&P 500 VIX Short-Term Futures (VXX)
The VXX ETN provides exposure to the S&P 500 VIX Short-Term Futures Index. The VXX last traded at $27 and could easily run well above $30, near-term with the chaos.
ProShares VIX Short-Term Futures ETF (VIXY)
ProShares VIX Short-Term Futures ETF provides long exposure to the S&P 500 VIX Short-Term Futures Index, which measures the returns of a portfolio of monthly VIX futures contracts with a weighted average of one month to expiration. The VIXY last traded at $22 and could run above $30, near-term.
The post The Top 3 Ways to Hedge for Madness in the Markets appeared first on Morningology.
