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Explorer
The World’s Best Stocks

January 27, 2020

To follow up on last Thursday’s issue that highlighted the worsening China virus, I believe it is appropriate for us to hedge China risk and volatility with an inverse China exchange-traded fund (ETF).

To follow up on last Thursday’s issue that highlighted the worsening China virus, I believe it is appropriate for us to hedge China risk and volatility with an inverse China exchange-traded fund (ETF).

This issue is impacting all markets but Chinese stocks are particularly vulnerable.

At this point, 20% of the Explorer portfolio is allocated to Chinese stocks including Alibaba, Ping An and Luckin Coffee.

Accordingly, I’m adding a new half position to the Pro Shares Ultra Short China 50 ETF (FXP), which trades inversely to the China index by 200%.