iPath S&P 500 VIX Short-Term Futures (VXX)

May 6, 2022Trade Ideas

With fears of a recession, inflation, and plenty of fear, markets could fall even more.

“It’s hard for markets to be totally optimistic when inflation is going up, growth is going down and interest rates are rising fast across the globe,” says Brunello Rosa, who is the CEO and head of research at Rosa & Roubini.

The real trouble could begin if the Dow breaks triple bottom support around 32,272. If we break that, there’s no support until we drop under 31,000.

That being the case, investors may want to hedge for further volatility with trades, with trades such as the Pro Shares Ultra VIX Short-Term ETF (UVXY), iPath S&P 500 VIX Short-Term Futures (VXX), and the ProShares VIX Short-Term Futures ETF (VIXY).

Unfortunately, until this chaos blows over, we need to be prepared for the worst.

At the same time, don’t let this scare you away from the market. This too shall pass. The last thing you want to do is pull money from markets that are historically resilient.

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