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From glancing at the headlines, the concept of acquiring inverse ETFs – that is, exchange-traded funds that rise in value as their underlying securities, assets or sectors fall – doesn't seem very relevant. After all, the September jobs report came in hotter than expected.
Warren Buffett has divested from multiple banks after identifying concerning issues in their financial practices.
SEF: If You're Bearish On Financial Stocks, You Might Like This ETF
The latest turmoil doesn't mean investors should shy away from financial institutions.
Given the half-million outflow and deteriorating fundamentals, the appeal for financial ETFs, especially banks, has dulled. As a result, investors bearish on the sector right now may want to consider a near-term short.
Financial sector has underperformed last week on mixed earnings.
We are bearish on all American bear market ETFs. Measuring the purchase levels of short ETFs replaces the old, odd lot and total short selling indicators so popular in the 1960s, 70s and 80s.
Yield curve inverted on Jun 13 on super-hawkish Fed rate hike bets. A flattening yield curve is negative for financial stocks.