For some time now, I’ve advised minimizing exposure to U.S. equities, particularly while the economic and political landscape remains clouded by trade wars and anti-immigration policies. These ongoing disruptions have created a level of uncertainty that makes traditional equity investing unusually risky. My recommendation remains the same: pay close attention to the bond market and the value of the U.S. dollar, rather than being distracted by short-term moves in the stock market.
That said, if you’re an active investor—someone who closely monitors the markets—there are still compelling ways to trade. One of my preferred instruments right now is the 2X Long VIX Futures ETF (ticker: UVIX). This is a leveraged Exchange-Traded Product (ETP) designed to deliver twice the daily return of the S&P 500 VIX Short-Term Futures Index. Essentially, UVIX tracks market volatility, often spiking during times of economic, geopolitical, or financial stress.
Because UVIX is leveraged and resets daily, it is not suitable for buy-and-hold investors. It’s a trading vehicle, not an investment. Positions should be monitored as frequently as daily, and trades should be based on short-term market dynamics. However, for those who understand the risks and can manage the volatility, the rewards can be significant.
For example, I recently purchased UVIX at $24 per share and sold at a 12% gain in just one week. If annualized using compound interest, that’s an eye-popping yield of 28,800%—though to be clear, such returns are unlikely to be consistently replicated and come with substantial risk.
Given the backdrop of global instability—including trade tensions and developments like the recent bombing in Iran—market volatility is likely to remain elevated. This makes UVIX an attractive opportunity for disciplined traders who understand the instrument and can act swiftly.
In short, while broad equity exposure may not be prudent under current conditions, targeted, tactical trades in volatility products like UVIX offer a way to capitalize on market uncertainty. Just proceed with caution, clear strategy, and a keen eye on the exits.
This isn’t an investment recommendation—it’s a trading recommendation. Any capital used should be considered fully “at risk.”
That said, I executed a second trade that yielded a 31% gain in just 5 days, which theoretically equates to an annualized compound return of about 24.75 billion percent.
And the good thing about taxes? They only take a portion of the “free” money you just made.
In fact, if you had timed things right yesterday, you could have captured a 21% gain in a single day—which translates to a theoretical annualized compound rate of approximately 678,000,000,000,000,000,000,000,000,000,000% (that’s 6.78 decillion percent).
Of course, a 12% gain from a buy-and-sell trade over one week qualifies as a short-term capital gain, which is taxed at your regular income rate. By contrast, long-term capital gains (on assets held for more than one year) and qualified dividends can be taxed at much lower rates—as low as 0%, depending on your income.
If taxes are a bigger concern than immediate income, you might consider making these kinds of trades in a tax-deferred retirement account (such as an IRA or 401(k)), where gains can compound without immediate tax consequences.