Bullboard - Stock Discussion Forum Direxion Daily FTSE China Bear 3X Shares YANG

The investment seeks daily investment results, before fees and expenses, of 300% of the inverse (or opposite) of the daily performance of the FTSE China 50 Index. The fund, under normal circumstances, invests in swap agreements, futures contracts, short positions or other financial instruments that, in combination, provide inverse (opposite) or short leveraged exposure to the index equal to at... see more

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Direxion Daily FTSE China Bear 3X Shares > Lots feeling the pain of shorting China

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Post by mdaffin on Apr 09, 2015 7:59pm

Lots feeling the pain of shorting China

https://www.bloomberg.com/news/articles/2015-04-09/china-bears-on-wrong-end-of-4-trillion-rally-refuse-to-go-away

If you look at some of the companies in the index, the valuations at a cursory look aren't that bad. A lot of the banks have P/E ratios in single digits and pay a decent dividend.

The pain you are feeling is starting to decelerate (-18 %, -11 %,...) so it may be ready to blow. One caution is when I bought some YANG, the China FED announced stimulation program and there is no reason it might not happen again.