Direxion Daily Chna Bear 3X (CZI)
By Paul Goodwin, Editor of Cabot China & emerging Markets Report
From Cabot Wealth Advisory 2/24/11 Sign up for free Cabot Wealth Advisory e-newsletter
As a matter of principle, I avoid trying to predict what markets will do, whether it’s for tomorrow or next year. The simple fact is that no one can consistently predict where the markets are heading.
But if you have a sense of adventure and a strong opinion about what’s going to happen in China and the other emerging markets, I have an exchange-traded fund (ETF) that may interest you.
If you’re convinced that China is in for a steep correction and want to cash in on that dip, you should consider the Direxion Daily China Bear 3X Shares (CZI). This ETF will earn you triple the opposite (or inverse) of the price performance of the BNY China Select ADR Index. This leveraged short fund has had three good days in a row, and a big pullback in China would be highly profitable. Just be aware that such a leveraged ETF is more of a short-term vehicle, not a long-term holding.
I don’t advise it, of course, because it’s a bet on the future of an entire market. That means you can’t—as you could with an individual company—get any insight into a business plan, revenue and earnings history, management, barriers to entry, debt, product mix, strategy or any of the other bits of data that due diligence can bring you.
Personally (and for my subscribers), I prefer going to cash when the wind is in the wrong direction.
But if you have a hunch and want to make good money if you’re right, here’s your chance.
Editor's Note: Paul Goodwin is the editor of Cabot China & Emerging Markets Report, which Hulbert Financial Digest rated as the #1 newsletter for five years in 2009 and 2010. During that time, the Report rewarded subscribers with a jaw-dropping return of 174% (an average annualized gain of 20.5% every year) versus the Wilshire 5000’s gain of 15.4% over the same period. Don’t miss another winning recommendation.
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Emerging Markets Specialist, Analyst and Editor of Cabot China & Emerging Markets Report
A researcher and writer for over 30 years, Paul Goodwin has been a member of the Cabot investment team and editor of Cabot China & Emerging Markets Report since 2005. Under Paul’s stewardship, Hulbert Financial Digest rated Cabot China & Emerging Markets Report the number-one-rated newsletter of 2006 with a 78.6% gain for the year, the number-one-rated newsletter of 2007 with a 74.1% return, and the top-performing investment adivsory for five years with a 17.9% annual return.
|Direxion Daily China Bear 3X Shares (CZI)
|Category: Bear Market |
Fund Family: Direxion Funds
Net Assets: 10.53M
Fund Inception Date: December 3, 2009
Legal Type: Exchange Traded Fund