Balanced Portfolio Recommendation: 5% allocation to US Equities Strong Bear Hedge Fund (BBUS) S&P500 Short ETF (Hedge)
Date: 02/8/2024
*** GENERAL AVICE ONLY***
U.S. Equities Strong Bear Hedge Fund – Currency Hedged (BBUS)
Opportunity to profit from, or protect against a declining U.S. sharemarket
A 1% fall in the U.S. sharemarket on a given day can generally be expected to deliver a 2% to 2.75% increase in the value of the Fund (and a corresponding decrease in the value of the Fund if the U.S. sharemarket rises).
*** Trade Plan ***
Poor economic data out of the US has started to pile up along with soured sentiment on the Mega-Cap stocks and the AI thematic. We are recommending a 5% allocation to a portfolio protection tool or “short hedge” to buffer the damage from any downside move
Sentiment has turn significantly sour over the last week as the “Magnificent 7” stocks have reported poorly and investors grow weary of the promise of future profits not materialising. These 7 stocks have been the saviour of the market over the last 12 months, although now it has reached a point where this can no longer be relied upon
Total Portfolio Allocation: 5% of portfolio
Entry: $5.32 | Trim: $6.50 (+22%)Exit: >$8.00(+55%)
Disclaimer: The recommendation given is general advice only. It does not take into account your personal objectives, financial situation, or specific needs. This information should not be your sole resource when making such decisions. We strongly recommend you to seek the advice of financial, taxation, and legal professionals before finalising any investment decisions.