2024-06-13 11:33:20 ET
Summary
- SH is a simple way to short the S&P 500, consistently outperforming its intended -1x target and offering an impressive 6.11% TTM dividend.
- It outperforms when the VIX is low and the S&P 500 makes large daily swings.
- This was evident on Wednesday when the S&P 500 closed +0.85% higher, while SH closed only -0.77% lower. The cumulative effect of this can be very beneficial.
Given this week's rally to new all-time highs to 5,447, shorting the S&P 500 ( SPY ) seems reckless. Everything seems to be going right - inflation just came in at 0% m/m, the Fed is dovish, and cuts are likely to start in September. That said, euphoric new highs are perhaps the best time to consider hedges and tactical shorts - by the time you wait for bad news the markets could be considerably lower....
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SH: Arguably The Best Way To Short The S&P 500