How to Protect your Money from the Trade War

08:03 08/25/2019

Stock futures are plunging.

In fact, as of Sunday night, Dow futures were down nearly 300 points.  All after the trade war intensified late last week, with no real end in sight. 

Shortly after China retaliated with tariffs on $75 billion worth of goods last week, President Trump tweeted:  

“Our great American companies are hereby ordered to immediately start looking for an alternative to China, including bringing your companies HOME and making your products in the USA. I will be responding to China’s Tariffs this afternoon. This is a GREAT opportunity for the United States. Also, I am ordering all carriers, including FedEx, Amazon, UPS and the Post Office, to SEARCH FOR & REFUSE all deliveries of Fentanyl…”

Then, President Trump said the 25% tariffs on $250 billion worth of Chinese imports would rise to 30% by October 1, 2019.  Separately, the remaining $300 billion worth of imports will be tariffed at 15% instead of 10% by September 1, 2019.

“Sadly, past Administrations have allowed China to get so far ahead of Fair and Balanced Trade that it has become a great burden to the American Taxpayer,”he also. tweeted. “As President, I can no longer allow this to happen!”

As we’ve noted, some of the best ways to prep for this volatility is with the following:

ProShares Ultra VIX Short-Term Futures ETF UVXY 
As volatility ticks higher with the trade war, ETFs such as the UVXY could run even higher from a current low of $30 a share.  . The ETF was designed to match two times (2x) the daily performance of the S&P 500 VIX Short-Term Futures Index. 

VelocityShares Daily 2x VIX Short-Term ETN TVIX 
The TVIX is another great way to trade elevated volatility.  This ETF  tracks an index of futures contracts on the S&P 500VIX Short-TermFutures Index. As volatility ticks higher, the TVIX ticks higher. 

iPath S&P 500 VIX Short-Term Futures [VXX}
As volatility returns to the markets, one of the best ways to profit from volatility is with the VXX ETN, which provides exposure to the S&P 500 VIX Short-Term Futures Index Total Return. 


This article has been provided by a Chasing Markets contributor. All content submitted by this author represent their personal opinions, and should be considered as such for entertainment purpose only. All opinions expressed are those of the writer, and may not necessarily represent fact, opinions, or bias of Chasing Markets.
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