How do you make money from Reverse index funds?


I was looking at SOXS and thought it may be a good purchase with the worry of a crash. My only question is how do people make money off of those?

If you own something that goes up when the market crashes, why would anyone buy it when it’s really high? Like if there’s a 80% dip and This goes up 240% (being a 3x), why would anyone buy that? Is it that there are people dumb enough to think it would go higher so they buy it then? Like when gold shot up in March 2020?


Comments

Leave a Reply

Your email address will not be published. Required fields are marked *