While it’s looking like another blood bath in the markets, remember not to panic.
The pullback we’re seeing is healthy.
A 10% to 15% correction in the markets would be healthy.
That’s according to long-time bull Ed Yardeni, President of Yardeni Research, as noted by CNBC. “The market has had a huge move since March 23. The Nasdaq is up something like 70%. That’s a melt-up. It’s not as big as what we had in 1999 when we had over 200%. But I wouldn’t want to see a repeat of that. So, I’m actually somewhat comforted by the market taking a break here,” he told CNBC.
We’re also seeing higher volatility and uncertainty with nearing U.S. elections just weeks away.
With that in mind, you may want to consider hedging for volatility with the following:
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.
VelocityShares Daily 2x VIX Short-Term ETN (TVIX)
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)
The VXX ETN, which provides exposure to the S&P 500 VIX Short-Term Futures Index.