BTAL - ProShares Ultra S&P500 ETF: Fear Not The All-Time High

2024-03-19 07:30:00 ET

Summary

• Analysts are less certain about an imminent recession in the US, and the S&P 500 has rallied by 8% in 2024.
• ProShares Ultra S&P500 is a 2x leveraged bet on the US stock market index.
• Despite concerns about rising valuations, now may be a good time to invest in the S&P 500 as the US economy may avoid a recession.
• The devil is in the details: here are three ideas to responsibly add SSO to a growth portfolio.

For many weeks if not months, enough analysts (me included) had been calling for a nearly inevitable recession ahead. The causes and consequences seemed clear: stubborn inflation, rapidly rising interest rates, and the end of the COVID-19 recovery period seemed to be weighing on a few key metrics of economic prosperity, including rising consumer debt service payments relative to income (slightly above pre-pandemic levels, in fact), tanking consumer confidence levels (which, granted, has recovered a bit lately), and a cooling job market , especially in the more cyclical sectors....

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