經濟衰退警報頻響，美股三大股指承壓收跌
A recession is approaching, and US stocks are falling? Do a good strategy to “boost” your wallet! (Follow and comment to send 66 points)
As of June 21, 2022,$Nasdaq Composite Index (.IXIC.US)$The decline during the year reached 30%, a proper bear market.
Even the bad mood is getting worseIn the face of the current economic recession that the world is concerned about, Powell also made it clear that “this is of course a possibility.” It also emphasized that the Federal Reserve plans to continue raising interest rates until inflation starts to slide to 2%.
Even if a single interest rate hike of 100 basis points is used as a “cost.”
![As of June 21, 2022,$Nasdaq Composite Index (.IXIC.US)$The decline during the year reached 30%, a proper bear market. [Sob][Sob][Sob] Even the bad mood is getting worseIn the face of the current economic recession that the world is concerned about, Powell also made it clear that “this is of course a possibility.” It also emphasized that the Federal Reserve plans to continue raising interest rates until inflation starts to slide to 2%. Even if a single interest rate hike of 100 basis points is used as a “cost.” Under the cover of continued interest rate hikes this year, those leading Internet technology stocks that were still going strong last year have also declined unabated this year. presently$Apple (AAPL.US)$$Microsoft (MSFT.US)$They all fell by more than 20%, while$Amazon (AMZN.US)$$Tesla (TSLA.US)$Furthermore, it fell by more than 30%, and at one point it was close to 40%. It is foreseeable that if interest rates continue to rise and recession comes, there is a possibility that the stock market trend will continue to decline. In the face of ever-increasing volatility in the stock market, investors will face a huge crisis if they are still used to holding on to the bull market and not moving. Unbeknownst to me, in a mature capital market such as Hong Kong and US stocks, Smart Money has already begun to make flexible use of various hedging tools to better cope with stock market fluctuations. Let's take a look at it in detail today.How to use ET in the US stock market...](https://nnqimage.futunn.com/900080/editor_image/8838a701a4de3cf48b7ca8c7a29f89c3.jpg/big?imageMogr2/ignore-error/1/format/webp)
Under the cover of continued interest rate hikes this year, those leading Internet technology stocks that were still going strong last year have also declined unabated this year. presently$Apple (AAPL.US)$$Microsoft (MSFT.US)$They all fell by more than 20%, while$Amazon (AMZN.US)$$Tesla (TSLA.US)$Furthermore, it fell by more than 30%, and at one point it was close to 40%.
It is foreseeable that if interest rates continue to rise and recession comes, there is a possibility that the stock market trend will continue to decline.
In the face of ever-increasing volatility in the stock market, investors will face a huge crisis if they are still used to holding on to the bull market and not moving.
Unbeknownst to me, in a mature capital market such as Hong Kong and US stocks, Smart Money has already begun to make flexible use of various hedging tools to better cope with stock market fluctuations.
Let's take a look at it in detail today.How to use ETF products in the US stock market to hedge against the risk of the stock market decline, and may even obtain excess profits?
For example,$ProShares UltraPro Short QQQ ETF (SQQQ.US)$The cumulative increase since the beginning of 2022 has reached an astonishing 115%.
![As of June 21, 2022,$Nasdaq Composite Index (.IXIC.US)$The decline during the year reached 30%, a proper bear market. [Sob][Sob][Sob] Even the bad mood is getting worseIn the face of the current economic recession that the world is concerned about, Powell also made it clear that “this is of course a possibility.” It also emphasized that the Federal Reserve plans to continue raising interest rates until inflation starts to slide to 2%. Even if a single interest rate hike of 100 basis points is used as a “cost.” Under the cover of continued interest rate hikes this year, those leading Internet technology stocks that were still going strong last year have also declined unabated this year. presently$Apple (AAPL.US)$$Microsoft (MSFT.US)$They all fell by more than 20%, while$Amazon (AMZN.US)$$Tesla (TSLA.US)$Furthermore, it fell by more than 30%, and at one point it was close to 40%. It is foreseeable that if interest rates continue to rise and recession comes, there is a possibility that the stock market trend will continue to decline. In the face of ever-increasing volatility in the stock market, investors will face a huge crisis if they are still used to holding on to the bull market and not moving. Unbeknownst to me, in a mature capital market such as Hong Kong and US stocks, Smart Money has already begun to make flexible use of various hedging tools to better cope with stock market fluctuations. Let's take a look at it in detail today.How to use ET in the US stock market...](https://nnqimage.futunn.com/900080/editor_image/834a666410383628bef47f25eed906b0.jpg/big?imageMogr2/ignore-error/1/format/webp)
01 Shorting or hedging, these ETFs are worth understanding first
First, let's popularize the difference between shorting and hedging.
In an upward trend,The purpose of shorting and hedging is completely different。 Shorting is the opposite of the market trend and is equivalent to bucking the trend; hedging, on the other handA normal profit protection strategyto avoid rapid increases or decreases in profits due to price fluctuations within a short period of time.
However, in a downtrend, the results of shorting and hedging are about the same. In other words, shorting verifies that investors have correctly judged the decline in the stock market, while for investors who hold underlying stocks and don't want to completely sell short positions, hedging better protects this judgment and implements bearish judgments into monetization.
Below are some ETFs that short the US stock market index. Among them,Whether you look at the turnover or the year-to-date rise and fall rate,$ProShares UltraPro Short QQQ ETF (SQQQ.US)$Obviously, they're all the brightest stars.
![As of June 21, 2022,$Nasdaq Composite Index (.IXIC.US)$The decline during the year reached 30%, a proper bear market. [Sob][Sob][Sob] Even the bad mood is getting worseIn the face of the current economic recession that the world is concerned about, Powell also made it clear that “this is of course a possibility.” It also emphasized that the Federal Reserve plans to continue raising interest rates until inflation starts to slide to 2%. Even if a single interest rate hike of 100 basis points is used as a “cost.” Under the cover of continued interest rate hikes this year, those leading Internet technology stocks that were still going strong last year have also declined unabated this year. presently$Apple (AAPL.US)$$Microsoft (MSFT.US)$They all fell by more than 20%, while$Amazon (AMZN.US)$$Tesla (TSLA.US)$Furthermore, it fell by more than 30%, and at one point it was close to 40%. It is foreseeable that if interest rates continue to rise and recession comes, there is a possibility that the stock market trend will continue to decline. In the face of ever-increasing volatility in the stock market, investors will face a huge crisis if they are still used to holding on to the bull market and not moving. Unbeknownst to me, in a mature capital market such as Hong Kong and US stocks, Smart Money has already begun to make flexible use of various hedging tools to better cope with stock market fluctuations. Let's take a look at it in detail today.How to use ET in the US stock market...](https://nnqimage.futunn.com/900080/editor_image/e85b4c558e3f38dcb21c46a0254059f2.png/big?imageMogr2/ignore-error/1/format/webp)
The reason is$ProShares UltraPro Short QQQ ETF (SQQQ.US)$It is a leveraged ETF that helps investors hedge their investment portfolios at a lower cost and avoid systemic risks.
For example, Finance Academy bought$Apple (AAPL.US)$However, the correlation between Apple's stock price and the Nasdaq index is very high.
For example, Finance Academy bought$Apple (AAPL.US)$However, the correlation between Apple's stock price and the Nasdaq index is very high.
I'm worried that interest rate hikes will not decrease in the future, causing Apple's stock price to fall, so I can spend 30% of my position to buy Apple and then use my 10% position to buy SQQQ, so I can hedge and avoid large losses.
02 The panic index is not panic
When there is a large fluctuation trend in the market, apart from shorting index ETFs,Another type of investment target also often appears in financial news media reports, and that is the panic index and ETFs that track the panic index.
![As of June 21, 2022,$Nasdaq Composite Index (.IXIC.US)$The decline during the year reached 30%, a proper bear market. [Sob][Sob][Sob] Even the bad mood is getting worseIn the face of the current economic recession that the world is concerned about, Powell also made it clear that “this is of course a possibility.” It also emphasized that the Federal Reserve plans to continue raising interest rates until inflation starts to slide to 2%. Even if a single interest rate hike of 100 basis points is used as a “cost.” Under the cover of continued interest rate hikes this year, those leading Internet technology stocks that were still going strong last year have also declined unabated this year. presently$Apple (AAPL.US)$$Microsoft (MSFT.US)$They all fell by more than 20%, while$Amazon (AMZN.US)$$Tesla (TSLA.US)$Furthermore, it fell by more than 30%, and at one point it was close to 40%. It is foreseeable that if interest rates continue to rise and recession comes, there is a possibility that the stock market trend will continue to decline. In the face of ever-increasing volatility in the stock market, investors will face a huge crisis if they are still used to holding on to the bull market and not moving. Unbeknownst to me, in a mature capital market such as Hong Kong and US stocks, Smart Money has already begun to make flexible use of various hedging tools to better cope with stock market fluctuations. Let's take a look at it in detail today.How to use ET in the US stock market...](https://nnqimage.futunn.com/900080/editor_image/9e0da41e53233b9989b8450e7ecdf11a.png/big?imageMogr2/ignore-error/1/format/webp)
The panic index is the VIX index, the full name is the Chicago Board Options Exchange Volatility Index (Chicago Board Options Exchange Volatility Index),Used to measure the S&P 500 IndexNext 30 daysExpected annualized volatility.
The target of the Panic Index is tracking options on the S&P 500 IndexThe price of each option reflects the market's expectations for future volatility.
According to historical performance, there is a clear correlation between the panic index and stock market trends.Simply put, the higher the panic index, the more bearish investors are about the stock market, the more likely it is that the stock market will fall.
Currently, ETFs that track the panic index are popular in the US stock market$ProShares Ultra VIX Short-Term Futures ETF (UVXY.US)$The cumulative increase of more than 30% since this year is a good explanation of how to use hedging tools to stabilize profits in the face of large market fluctuations.
03 Commodity ETFs also have spring
Similar to ETFs that track market indices, there are many ETF products that track commodity price trends in the Hong Kong and US stock markets.
Since this year, the performance of international oil prices has been strong. Despite a recent correction, the overall picture is still consolidating at a high level.
![As of June 21, 2022,$Nasdaq Composite Index (.IXIC.US)$The decline during the year reached 30%, a proper bear market. [Sob][Sob][Sob] Even the bad mood is getting worseIn the face of the current economic recession that the world is concerned about, Powell also made it clear that “this is of course a possibility.” It also emphasized that the Federal Reserve plans to continue raising interest rates until inflation starts to slide to 2%. Even if a single interest rate hike of 100 basis points is used as a “cost.” Under the cover of continued interest rate hikes this year, those leading Internet technology stocks that were still going strong last year have also declined unabated this year. presently$Apple (AAPL.US)$$Microsoft (MSFT.US)$They all fell by more than 20%, while$Amazon (AMZN.US)$$Tesla (TSLA.US)$Furthermore, it fell by more than 30%, and at one point it was close to 40%. It is foreseeable that if interest rates continue to rise and recession comes, there is a possibility that the stock market trend will continue to decline. In the face of ever-increasing volatility in the stock market, investors will face a huge crisis if they are still used to holding on to the bull market and not moving. Unbeknownst to me, in a mature capital market such as Hong Kong and US stocks, Smart Money has already begun to make flexible use of various hedging tools to better cope with stock market fluctuations. Let's take a look at it in detail today.How to use ET in the US stock market...](https://nnqimage.futunn.com/900080/editor_image/4bba51df2da934dcb4a5018f308ea752.png/big?imageMogr2/ignore-error/1/format/webp)
As you can see from the table above,The cumulative increase of Bloomberg crude oil ETFs by two times this year was as high as 110%，Many petroleum funds have become the scourge of weak markets.
Moreover, judging from the growth rate, since some ETFs are leveraged, when their long and short direction is in line with the trend of the underlying commodity, the gains may be quite astonishing.
04 Precautions
When we choose ETF products,Be sure to clearly identify the target of its tracking，The logic of its rise and fall, andThe leverage risk behind this lies.
Especially when it comes to choosing varieties that are contrary to market trends, you must figure out which direction you are actually working in.
Finally, there is a very important and essential tip. If you can't figure out how to configure this type of ETF, a great way is to use Futunniu's simulated trading function.
Click on the image below to learn how to operate demo trading↓↓↓
Finally, don't worry about missed market opportunities, as opportunities are always reserved for those who are prepared.
Risk Disclaimer: The above content only represents the author's view. It does not represent any position or investment advice of Futu. Futu makes no representation or warranty.Read more
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