Summary
- The Direxion Technology Bear 3x Shares is an ETF falling in the leveraged funds category.
- The vehicle seeks daily investment results 300% of the inverse performance of the Technology Select Sector Index.
- As rates have pushed higher in the past weeks, stocks have increased their valuations rather than cheapen them.
- Interest-sensitive tech, as measured by the Technology Select Sector Index, is up an astounding +12% year to date.
- There is a massive disconnect developing between the bond market and Tech equity valuations, and a mean reversion is expected.
For further details see:
TECS: Bond/Equity Disconnect Widening, With Tech Overpriced