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%.