Re-Opening May Come Faster than You Think. Be Prepared to Take Advantage. Markets are changing at a historical pace as digital technology, central bank policies, and the speed of information hasten movement. In 2020, we saw the market lose 34% over the course of three weeks before rebounding and registering the shortest bear market in history- 33 days. The rapid changes are happening at a crucial time in history, a market re-opening from the global pandemic. Investors need products that can deliver directional options, magnified exposure, and more surgical thematic-based strategies to remain nimble in a fast-paced World. On January 21, 2020, a Washington state resident became the first registered case of the coronavirus in the United States. Ten days later the WHO issued a global health emergency. February 2020, Global air travel was restricted, setting up airlines as the first industry to see a major impact from the spread of the virus. The rest, as they say, is history. World-wide closings would decimate the service economy as restaurants were shut down and citizens' movement was severely restricted. But, alas, there is hope for the world. Science has stepped to the forefront and delivered an effective vaccine at a pace previously thought impossible. Vaccines, herd immunity, and therapeutic & hygienic improvements have increased expectations that the global economy can move past this pandemic and see a gradual reopening. The most recent Bank of America Fund Manager Survey reported that a majority of respondents expect a V-shaped recovery, compared to just 10% nine months ago. 91% of fund managers are expecting an improvement in the economy which is the best economic outlook in the survey's 20-year history. The improved sentiment comes as we have a multi-trillion buildup of liquid assets sparked by an aggressive monetary and fiscal policy. In 2020, the surge in the U.S. money supply was the largest in 150 years. Households are set to spend with Goldman Sachs reported that consumers pent up savings was $1.5 trillion and going to $2.4 trillion, representing 11% of GDP. Understanding this dynamic and being prepared for the reopening trade will be a driving factor of profitability for investors in 2021. Turnaround plays have started to see interest as investors search for value in industries impacted by the shutdowns. Restaurants will open their doors to patrons, consumer cyclicals will pick up as savings are put to work, retail will see traffic return and compete with the e-commerce giants, airlines will welcome back those traveling for work and pleasure. Investors need a resource that can take advantage of these opportunities. Since 1997, Direxion has been offering non-traditional investments to accommodate various market cycles. Direxion specializes in providing decisive investors with solutions that deliver the flexibility to position portfolios opportunistically. Whether it be a re-birth in air travel via the 3x Aerospace & Defense Bull (DFEN); the demand for new homes in the suburban migration via the 3x Homebuilders & Supplies Bull (NAIL); the idea that the cloud will forever change the global economy via the 2x Cloud Computing Bull (CLDL); or even if you fear the vaccine will falter and you want to protect yourself via the 3x S&P 500 Bear (SPXS), Direxion has the instruments to help navigate volatility. Leverage can be a powerful investment tool if understood and utilized effectively. Direxion can provide you the instruments but, more importantly, they can provide you with the educational tools so you understand your risks. Professional investors who desire flexibility, leverage, and are willing to take the time to understand the impact of leverage should consider Direxion. Investing in a Direxion Shares ETF may be more volatile than investing in broadly diversified funds. The use of leverage by a Fund increases the risk to the Fund. The Direxion Shares ETFs are not suitable for all investors and should be utilized only by sophisticated investors who understand leverage risk, consequences of seeking daily leveraged, or daily inverse leveraged, investment results and intend to actively monitor and manage their investment. An investor should carefully consider a Fund's investment objective, risks, charges, and expenses before investing. A Fund's prospectus and summary prospectus contain this and other information about the Direxion Shares. To obtain a Fund's prospectus and summary prospectus call 866-476-7523 or visit our website at www.direxion.com. A Fund's prospectus and summary prospectus should be read carefully before investing. - Market Disruptions Resulting from COVID-19. The outbreak of COVID-19 has negatively affected the worldwide economy, individual countries, individual companies and the market in general. The future impact of COVID-19 is currently unknown, and it may exacerbate other risks that apply to the Fund.
- Direxion Shares Risks – An investment in the Fund involves risk, including the possible loss of principal. The Fund is non-diversified and includes risks associated with the Fund concentrating its investments in a particular industry, sector, or geographic region which can result in increased volatility. The use of derivatives such as futures contracts and swaps are subject to market risks that may cause their price to fluctuate over time. The Fund does not attempt to, and should not be expected to, provide returns which are three times the return of its underlying index for periods other than a single day. Risks of the Fund include Effects of Compounding and Market Volatility Risk, Leverage Risk, Market Risk, Market Disruption Risk, Aggressive Investment Techniques Risk, Counterparty Risk, Intra-Day Investment Risk, Daily Index Correlation/Tracking Risk, Other Investment Companies (including ETFs) Risk, and risks specific to the securities of the Retail Industry and Consumer Discretionary Sector. Retail and related industries can be significantly affected by the performance of the domestic and international economy, consumer confidence and spending, intense competition, changes in demographics, and changing consumer tastes and preferences. Please see the summary and full prospectuses for a more complete description of these and other risks of the Fund.
- Distributor for Direxion Shares: Foreside Fund Services, LLC.
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