This Article was first published on 29th Aug 2018 on our Asia-In-Focus Newsletter. To get the latest newsletters, click here.

Asia-In-Focus

Aug 2017 Edition

Why Buy Low, Sell High Is The Hardest Thing In Investing And How To Overcome It

Last month, we spoke about the high valuation of the market and my fear that we are heading for a stock market crash or correction. We also discussed the options I have to hedge against that risk. If you have not read our previous email, you can read it here.
I ended up buying an inversed S&P 500 ETF, the ProShares UltraShort S&P 500 ETF (SDS) in particular.

Review On My Decision

Here is a summary of my thoughts.

  • ProShares UltraShort S&P500 ETF is a tracking fund that tries to produce 2 times leveraged negative return to the S&P500 index for a single day.
  • This means that if the S&P500 …