The best way to short US stocks

Paul Amery explains how you can use an inverse exchange-traded fund to profit from falling US share prices.

Pull up a five-year chart of the FTSE 100 or the S&P 500 (see chart), you'll notice two things. Stock markets have moved up steadily since bottoming in 2009, and the dips have been getting progressively shallower as markets have moved higher.

This may suggest that the victory of the stock-market optimists is complete. But, according to US fund manager John Hussman, these are signs of a peaking market.

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Paul Amery

Paul is a multi-award-winning journalist, currently an editor at New Money Review. He has contributed an array of money titles such as MoneyWeek, Financial Times, Financial News, The Times, Investment and Thomson Reuters. Paul is certified in investment management by CFA UK and he can speak more than five languages including English, French, Russian and Ukrainian. On MoneyWeek, Paul writes about funds such as ETFs and the stock market.