Monday’s massive drop was a reminder that volatility can return to the market any time . The stock market is not a one way road. Drops, crashes or bear markets are almost certain to appear again and again. It is just a question of time.
But there are at least 5 different ways to deal with the inevitable decline.
1.) Do Nothing
2.) Get out
3.) Go Short
4.) Buy Put Options
5.) Buy Inverse Exchange-Traded Funds (ETFs)
No matter which direction markets are heading, you have plenty of ways to profit from such situations.
Sven Franssen