And no, BBUS is not a typo, nor does it have an angry underpaid driver. It will, however, arrive late sometimes. Either way, this is a BBUS that you don’t wanna miss!
BBUS is an exchange traded fund (ETF) that is inversely correlated to the main American sharemarket index, the S&P500, with leverage.
This means that if the S&P500 loses 1%, BBUS will typically gain 2% to 2.75%, and vice versa.
We remain wholeheartedly convinced that that a massive sharemarket correction in the vicinity of 20-40% is on the horizon.
If the S&P500 drops 20%, BBUS will gain around 40-55%… and if this does happen, we will be cashing out and we won’t be boarding the BBUS again until the next correction!
BBUS is officially the most ‘contrarian’ ingredient in our sandwich… and given its leverage, it has the capacity to be the most volatile. For this reason we are only exposing 4% of the The VCo Defensive 50 (Tuna Salad Wrap) to BBUS.