leveraged cyber security etf battleground

Post on 12-Apr-2017

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Welcome to ETF Trading Research Your premier site to instantly diversify your

portfolio to make more money! Want More Research and Strategies on ETFs visit our

website ETFtradingresearch.com

Over the last few months the battle between the bears and bulls over cyber security stocks has been heating up.

Now, aggressive traders can use a leveraged cyber security ETF to pick a

side and profit.

Today’s world is more connected and convenient than ever before. Everything

from mobile devices, cars, homes, businesses, and governments are

connected online and that data is stored or backed up in the cloud.

These technological advancements have made life and doing business easier or better for those that use them. But they

also come with the added risk and vulnerability to cyber attacks.

Now more than ever, cyber security is the top priority of individuals, businesses,

and governments alike. Not surprisingly, the ETF industry has jumped on the

cybersecurity bandwagon.

The PureFunds ISE Cyber Security ETF $HACK launched 11 months ago. As you

can see, HACK surged more than 30% higher in the first 7 months after it

launched… then it gave back the majority of those gains over the last 3 months.

Needless to say, those are some wild price swings in its short existence! Now

the bulls and bears are making their case for what the future will bring to cyber

security stocks and the new leveraged ETFs that track these stocks.

Cyber threats come is all shapes and sizes. They range from simplistic

password fraud, to ransomeware, and complex Distributed Denial of Service

(DDoS) attacks.

In a recent ‘State of The Internet’ report from Akamai $AKAM found that DDoS attacks hit a record high in the second quarter of 2015. The volume of attacks grew by 132% year-over-year and 7%

since the first quarter.

You can check out the DDoS attacks happening right now at

www.digitalattackmap.com. Another study finds that it takes an

average of ten hours before a company can even begin to resolve a DDoS attack.

And those outages cost a company an average of $100,000 per hour. In short, a DDoS attack can easily cost an internet-

reliant company $1 million before the company even starts to mitigate the

attack!

But the monetary value is secondary according to

www.cybersecurityindex.org. The biggest threat to businesses and

governments is media & public perception.

They care about the bad publicity that comes along with a cyber attack. They

don’t want to lose future customers because they get blasted in the media for

their lack of effort to protect their information.

There’s no doubt about it, governments and businesses are spending more and more money to prevent cyber attacks.

And that’s a boon for cybersecurity companies… regardless of the

motivation behind the spending.

Cyber security may be the most pressing issue facing businesses, governments, and individuals in the digital age… but there are a few problems with investing

in cyber security companies.

The cyber security industry is highly competitive. Many companies are

fighting over the same business. This competition is driving down margins and

making it harder for cyber security companies to make money.

Lots of investors jumped on cyber security bandwagon and pushed the

valuations of these stocks sky high. In short, cyber security stocks are

momentum stocks.

Investors piled into these stocks based on the hope that increased spending on

cyber security would translate into bigger profits for cyber security

companies.

But so far that’s not happening. If their revenue and earnings don’t match these lofty expectations they’re going to come

crashing back down.

If you think the bulls are right, take a look at buying the Direxion Daily Cyber

Security Bull 2X Shares $HAKK. This ETF seeks daily investment results that are two times (200%) the daily performance

of the ISE Cyber Security Index.

If you think the bears are right, take a look at buying the Direxion Daily Cyber

Security Bear 2X Shares $HAKD.

This ETF seeks daily investment results that are two times (200%) the inverse (opposite) of the daily performance of

ISE Cyber Security Index.

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