Global stock markets continue to crumble around us. With the latest news regarding the default situation in Greece things look even worse. However, there is still a way to make money with ETFs. Short ETFs are a great way to make money while we are stuck in tough economical markets.
Precious metals – particularly silver and gold, are doing well and will continue to do well. However, there are also the short exchange traded funds like SUK2 for the FTSE, or SE2P for the eurostoxx that many investors are making money off of. There are also many US equivalents to these short ETFs.
Short ETFs can capture and monetize a falling stock market for even the most humble investor with just a few dollars in a brokerage account. This is if you do your homework and pay your cards right.
If markets resume their upward trend then this is a bad strategy. But how likely is this? Goldman is in the dock. Greece is causing a European bond crisis. The UK election threatens a hung parliament with no leadership. The Chinese economy is overheating. The US housing market remains in a depression that will get worse if interest rates rise courtesy of the Greek crisis spreading.
Since the bad news is that the United States economy – and most other economies around the world, are in the toilet, and will continue to be for a while, then using short ETFs to make some money is a great way to put some extra cash in you pocket and a great way to allow you to keep investing, even in these tough economic markets.