5 Inverse ETFs That Gained More Than 20% in April
Written by Emily J. Thompson, Senior Investment Analyst
Updated: May 01 2024
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Source: NASDAQ.COM
- U.S. Stock Market Performance: The U.S. stock market ended April with losses, breaking a five-month winning streak, with the Dow Jones declining 5%, S&P 500 sliding about 4.2%, and Nasdaq losing 4.4%.
- Economic Growth Slowdown: The U.S. economy expanded at the slowest pace in two years in Q1 of 2024, growing by 1.6% annually, below expectations, due to lower consumer and government spending amid rising inflation.
- Inflation Concerns and Fed Rate Cuts: Growing inflation worries, delays in Fed rate cuts, and geopolitical tensions have impacted investor sentiments, with the Federal Reserve signaling that persistently high inflation may delay interest rate cuts.
- Inverse ETF Gains: Inverse or inverse-leveraged ETFs saw significant gains last month due to bearish market sentiments, with products like LABD, DRV, FLYD, TZA, and CARD recording over 20% returns.
- AI Innovation and Consumer Confidence: Despite economic challenges, the expansion in AI applications is expected to drive stock prices higher, while U.S. consumer confidence has been declining due to concerns about financial situations amid high prices and interest rates.
Analyst Views on TZA
Wall Street analysts forecast TZA stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for TZA is USD with a low forecast of USD and a high forecast of USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
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About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
