Against a backdrop of rising interest rates, weaker economic data and political gridlock, the SP 500 is still trading within 1% of its all-time high price of 2451.
The US Federal Reserve has lifted the Fed Funds target three times since the SP 500 posted its pre-election low of 2025 on November 9th of last year.
You're not a member! Trial today
The tightening of credit conditions combined with lower corporate loan growth has been a trigger for material corrections in US equity markets in the recent past.
Investors looking to profit from a fall in the SP 500 can look to buy the BetaShare ETF with the symbol: BBUS.
BBUS is an inverse ETF, which means the unit price will rise as the SP 500 Index trades lower.
BBUS is also weighted, so that a 1% move in the SP 500 Index translates to a 2.5% change in the unit price.
The unit price of BBUS is currently near the $7.00 level. We calculate that when the SP 500 trades back to the November low of 2025, the unit price of BBUS will be in the $10.75/ $11.00 area.
BetaShare ETF: BBUS
