20s Money Portfolio Update: Bought SKF – UltraShort Financial ETF
Yesterday, I decided to build a position in SKF – the UltraShort Financial ETF because I think the financial sector has more to drop.
I have been reading credible arguments which explain that more bank failures are on the way including probably one or more major bank names such as Bear Stearns. Meanwhile, Freddie Mac and Fannie Mae continue to get hammered. With the ETF price hovering around $130 right now, I am hoping for the price to get back up towards the $200 level that it was at just months ago.
If I can sell my position around $180, it would be an approximate 27% gain. While the price may go down as financials bounce every now and then, I think the upside to banks are limited with the downside having more potential; therefore, the UltraShort ETF has higher potential upside.
Do you want to see my entire portfolio? Track my investments and trades at Covestor.