Quote:
Originally Posted by STTGService
In short,UYG is an ETF that gains in value when financial stocks lose value. Do you really think financial stocks will be down... forever? They may be down for 2, 3, 5 or even 10 years, but in the long run, enough of them will recover. Unless they don't even survive the downturn and are nationalized.
Most long term investments are made with the view that an investment will gain in value.If it's a stock, you assume that the company will improve its products and make more money and your value as a shareholder is increased. I'm not sure if making a long term investment with the view that the financial industry is going to go kaput is a good idea.
And finally, the Bank index has fallen over 70%. Even if you are still bearish on the financials(and there does to seem to be a lot of reasons to be bearish) is it a good idea to essentially take a short position now?
Just my two cents.
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I believe you have UYG confused with SKF.
UYG is bullish when the Banks do well.
SKF does well when the banks do bad. This is the inverse you are talking about.