FAZ - Direxion Financial Bear 3X Shares
May 11, 2009 by Hot Stocks To Buy · Leave a Comment
- Risk level: 8
- Profit potential: 10
- Price Target 2 - 4 Months: $18 - $20 <--Correction
- Price Target 12 months: Strictly recommended as a short term play. <--Correction
Since we are Hot Stocks to Buy and not hot stocks to short, we will improvise and buy bear Exchange Traded Funds (ETF). ETFs are basically a portfolio of stocks, bonds or other types of investments that are pooled together to list under one symbol so that it can be traded like a regular stock. We are adding Direxion Financial Bear 3x Shares to our portfolio, symbol FAZ. FAZ represents an intriguing ETF to own as it’s basically shorting the financial market. Since their closing high of $104.07 on March 9th, 2009, FAZ has dropped to a ridiculous low of $4.49 on May 8th, 2009. According to Yahoo’s Finance profile for FAZ:
“The investment seeks to replicate, net of expenses, 300% of the inverse daily performance of the Russell 1000 Financial Services Index The fund will invest at least 80% of assets in securities that comprise the index. It will also utilize financial instruments that, in combination, provide leveraged and unleveraged exposure to the index. The fund is nondiversified.”
We feel this is the best way to invest in a potentially down market. We are still positive on financials in the long term, but we do see a potential pullback in the near term.
We wish you luck on your investments and as always do your own research prior to purchasing or selling a stock. We make recommendations based on our own research and this site is solely for the purpose of entertainment reading. Thank you for visiting Hot Stocks to Buy.
