December could be another disaster.
Just a year ago, the Dow plunged from nearly 26,000 to a low of 22,400 in days thanks to a trade war that won’t go away. Now, there’s fear we could see it happen all over again. All as the trade war shows no signs of cooling off.
Wilbur Ross even just said Trump is “serious” when he said trade talks could last beyond the 2020 election, as reported by MarketWatch. Ross also noted Trump would impose another round of tariffs on Chinese goods on Dec. 15 unless there was "some real reason to postpone them."
While smart investors can always run to the safe havens of gold and silver, we can also find opportunity in volatility itself with ETFs and ETNs that run with the Volatility Index (VIX).
Some of the top investment ideas to keep an eye on include:
ProShares Ultra VIX Short-Term Futures ETF (UVXY)
As volatility ticks higher with the trade war, ETFs such as the UVXY could run even higher. The ETF was designed to match two times (2x) the daily performance of the S&P 500 VIX Short-Term Futures Index.
VelocityShares Daily 2x VIX Short-Term ETN (TVIX)
The TVIX is another great way to trade elevated volatility. This ETF tracks an index of futures contracts on the S&P 500 VIX Short-Term Futures Index.
iPath S&P 500 VIX Short-Term Futures (VXX)
As volatility returns to the markets, one of the best ways to profit from volatility is with the VXX ETN, which provides exposure to the S&P 500 VIX Short-Term Futures Index Total Return. As volatility shoots higher, so does the VXX.