PSQ Stock Recent News

U.S. tax policy changes, including taxing unrealized gains, could significantly impact the stock market, especially technology stocks, and retirement accounts. Vice President Harris proposes tax credits and higher taxes on the wealthy, while former President Trump suggests tax cuts and increased fossil fuel production. Taxing unrealized gains may force wealthy individuals to sell stock holdings, potentially causing market declines and affecting all investors.

Typically, the response to a market downturn is to wait for the red ink to subside, then to pick up the discount. However, there's another way to play bearish cycles and that is to consider exchange-traded funds that profit on downcycles.

ProShares Short QQQ ETF is an inverse fund that tracks the daily performance of the Nasdaq 100 Index. The PSQ ETF provides a tactical trading tool for investors looking to hedge against the tech-heavy Nasdaq 100 Index. While PSQ offers a way to bet against the market, it is a risky short-term trading tool with potential value erosion and tracking errors.

Wall Street wavered this week on high inflation data which lowered chances of an imminent Fed rate cut. Plus, geopolitical tension in Middle East has weighed on stocks.

ProShares Short QQQ can be used to hedge your Big Tech gains and offset potential portfolio downside in a Wall Street bear market this year. The ETF's high cash investment yield, on a Treasury position beyond 100% of current market capitalization, is working in your favor. PSQ is often available to be traded in tax-free accounts, while direct short sales, more leveraged ETFs, and many option contract strategies are not.

While the buy-and-hold strategy makes the most intuitive sense, it's boring, which invariably leads curious investors down the path toward inverse ETFs. Just like any other exchange-traded fund, these bear trades represent a basket of securities under a single umbrella.

Buying the ProShares Short QQQ ETF provides a unique hedge against Big Tech stock losses, while offering a strong dividend yield. The product is a lower-risk way to profit from any decline in the NASDAQ 100 index. The daily rebalancing feature of this ETF limits net losses, while compounding gains to the upside, when interest rates are high like today.

Matthew Tuttle is currently not holding any positions overnight due to the uncertain market environment. Rob Isbitts highlights the importance of paying attention to market history and the potential for a market downturn.

PSQ is an exchange traded fund that targets daily results equal to the inverse (-1x) of the NASDAQ 100. Over the last five years, PSQ has been a poor investment overall, but over short periods when NASDAQ 100 declined, it has performed beautifully by mirroring declines with positive returns.

A tech bear market may well come again in 2023. The technology sector (most of the Nasdaq-listed companies) has experienced a large increase over the past couple of months, most notably in January 2023.