Most stock investments you make on Bloom are long. 📏

💡 Long = investing in a stock or ETF and hoping it will go up.

But the opposite is possible too. . .

💡Short = betting on a stock or ETF going down.

One easy way to “short” is by investing in inverse stocks, or stocks that offer an INVERSE return of another stock. 🥳

Let’s look at an example. 🔍

Investing in SPY means you believe that the S&P 500 will increase in value. 💪

Investing in SH is the “inverse” since it bets against the S&P 500! 👀

So, SH and SPY are separate ETFs that both bet on the S&P 500, but in opposite directions. 📊

If the S&P 500 decreases by 10%, then SH increases by roughly 10%. 📈

If the S&P 500 increases by 10%, SH decreases by roughly 10%. 📉

If you think a company is amazing and has great future potential, then investing long is perfect. 🗝️

If you think a company – or the market – is destined to go down, then you can consider shorting it. 😈

Most hedge funds will have both long positions and short positions. 🗑️

This way they can profit regardless of which way the market goes. 💔

But, just remember that if the underlying stock you’re shorting goes up, you could lose a lot of money on your position. 😔