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3 Funds to Arm Yourself for an Awful August

Seasonality's ugly side tends to come out this month. Be prepared.

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3 Funds to Arm Yourself for an Awful August

ProShares UltraShort Financials

073113SKF 300x186 3 Funds to Arm Yourself for an Awful August
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Typically, relative strength-leading sectors can turn into the rapidly declining groups as overly excited buyers turn tail and sell. The financial sector — as represented by the Financial SPDR (XLF) — has garnered a lot of buying lately as investors posture for a long-term bull run on the group.

Remembering that what goes up fast can come down fast, too, we like the idea of hedging potential market weakness with a hedge on financials.

The ProShares UltraShort Financials (SKF) allows you to profit from a decline in the financials, as this fund should appreciate about 2% for every 1% decline in the XLF.

A move to the $22 level appears likely for SKF over the next four to six weeks.


Article printed from InvestorPlace Media, http://investorplace.com/2013/07/3-funds-to-prep-yourself-for-an-awful-august/.

©2014 InvestorPlace Media, LLC

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