Whether you’re an expert analyst working along Wall Street or a complete novice to trading stocks, one of the best ways to gage the state of the market is via the S&P 500.
If you’re a bit out of the loop, this particular index hasn’t been performing all that great over the course of the past few months, causing many people to have a knee jerk reaction and avoid further investing.
But I’m here to tell you about a little-known loophole that lets you profit from these losses so while everyone else’s investments are tanking, yours could be soaring sky-high!
First, let’s check-out the chart for the S&P 500 ($SPX)…
It doesn’t take much to realize that share prices have been at a gradual decline, aside from a few bounces here and there.
So, if you’re one of the many shareholders using the index as a way to check-up on the health of the economy, then all signs are pointing to a cash-out, right?
Not necessarily…
Although, there’s no denying the fact that the value of $SPX has dropped more than $300 a share since October, there’s a trick to making the most out of this downtrend.
If you’re looking to make EASY gains during a time where the market isn’t all that hot, then the ProShraes Short S&P 500 (SH) is a good way to go.
Just take a look at the SH chart below.
At first glance, you’ll notice that it’s a mirror image of the chart for $SPX. In other words, each stock performs the exact opposite from one another!
As I write this, share prices for the S&P 500 are still sloping down, meaning that SH stock is ramping up!
Sure, the market has seen better days, but that doesn’t mean your profits have to too.
For around $30 or so, you could buy-in to the ProShares Short S&P 500 and make the most out of these tumbling stocks.
It goes to show that just because the market is down, doesn’t mean you have to sit on the sidelines and wait around for things start to look up again.
Contrary to popular belief, there is money to be made!
The next time you’re using the S&P 500 to gage the market and notice it taking a turn for the worse, feel free to use SH to your advantage so you can swap your losses for profits instead.
