Quote:
Originally Posted by jeffporfirio
Serious question. Going into the US election, would shorting the US dollar be a worthwhile bet?
|
I think you have to see what the market is expecting and then do the opposite if you want the big gains. For example with the Brexit, the money was loading onto the stay side before the vote. GBP was very strong. If the stay vote had won I think the pound would have just continued its upward trend but nothing spectacular like the plunge it ended up taking. Gold was very similar and probably the best pre vote buy. It would have been stable had the vote been to stay. But an exit vote would have gotten you some big gains because of the surprise factor. That's the key.
So with the us election, I would see what the market thinks and then, if you want to roll the dice and go for a big gainer, do the opposite. You don't really need to short anything but rather just buy the inverse etf. And get the etf that is the most liquid so you won't be stuck either way. NUGT and DUST for example if you want to play gold before. GUSH or DRIP are working well for oil. Not sure about currency etf's other than UDNT a 3x short I've seen a few times.