cdrum

Essentially, you can, and (potentially) profit from it.

Those of you who hold a negative view on China, your time has come. There’s a new ETF called ProShares UltraShort FTSE/Xinhua China 25, which, according to ProShares’ Website:

UltraShort FTSE/Xinhua China 25 ProShares seeks daily investment results, before fees and expenses, that correspond to twice (200%) the inverse (opposite) of the daily performance of the FTSE/Xinhua China 25 Index.

That (basically) means – If the Shanghai market falls (ok, the Index, but Indexes are supposed to follow the market, no?) by x percent, then the value of the ETF goes up 2 times x percent. So, if the index falls 10%, the value of your ETF goes up 20%.

Of course, if indeed there is no end in sight for the Chinese market, (meaning, up, up, and away), then this certainly would not be a good investment choice.

If the China markets are headed for a major correction, you could make a lot of money.

Think about it…

This entry was posted on Friday, November 16th, 2007 at 9:31 am and is filed under China, Commentary. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.