Anyone who doesn’t know what SHORT TRADE means, shorting the market is doing the exactly opposite of a long position would do. Investor will profit if the value of the asset falls. Unfortunately or fortunately most of conventional trading platform in Australia does not let the investor short the market.
You can then use some ETF’s to take an opportunity in similar movements, however on the ETF, the investor will still opening long positions, but the chart would be inverted.
👉 (Asx: Bear) | Bear | Beta Shares | EFT (top chart) Bear is an ETF from Beta Shares that seeks to generate returns that are negatively correlated to the returns of All Ordinaries. According to their website https://www.betashares.com.au/fund/australian-equities-bear-fund/
1% fall in Australian sharemarket would correspond a 0.9%-1.1% increase in the value of the fund and vice versa.
Think about BEAR as an INSURANCE POLICY for market crash.
We have indicated the last entry point on green circle 🟢 first chart, note that BEAR reflects the opposite moves of All Ordinaries (second chart).
Disclaimer: *Note that although we have been investing in the ASX and other markets over 10 years, anything you read within this group is NOT financial advise; it is general information only and we strong recommend to consult a financial adviser before making any investment decision that could have significative impact on your wealth.