- Instruments
Your capital is at risk if you invest. You could lose all your investment. Please see the full risk warning here.
Japan’s stock market recorded its steepest decline in nearly four decades, plummeting 12%[1] and erasing all gains for the year. Concurrently, the U.S. witnessed a historic surge in the VIX, also known as the “fear” index, which made one of its biggest intraday jumps ever.
This market turbulence followed unexpectedly poor jobs data released on Friday, which drastically altered the economic outlook from a potential mild recession (“soft landing”) to a more severe downturn (“hard landing”).
The primary concern fueling the global market downturn was the fear of a U.S. recession, triggered by the disappointing July jobs report. Investors were also worried that the Federal Reserve was falling behind in its response to the slowing economy, choosing to maintain interest rates at their highest level in two decades instead of cutting them. Additional market pressures included diminishing excitement around artificial intelligence and a rate increase by the Bank of Japan intended to strengthen the yen.
Further exacerbating market woes was the news that Warren Buffett’s Berkshire Hathaway had sold half of its Apple shares, significantly increasing its cash reserves. Apple’s stock value took a significant hit, dropping 4.8% following the announcement.
On Monday, the tech sector bore the brunt of the sell-off, with significant losses in major companies like Nvidia, which lost 6%, while Apple and Microsoft were down over 3%. Both the Nasdaq and S&P 500 indices fell by over 2%.
However, a notable recovery occurred on Tuesday. The Bank of Japan introduced a dovish policy stance that sent positive ripples through the markets. Encouraging economic data from the U.S. services sector, which showed a resurgence in new orders and employment, helped markets reverse course. The Nikkei 225 surged 10.2%, marking it as the second-largest single-day increase in three decades. U.S. indices also recovered ground, with key tech stocks like Nvidia and Meta seeing jumps of close to 4%.
Despite the earlier downturn, Nvidia’s stock price has doubled this year, indicating a stabilization in market conditions. The S&P 500 is now up 9.5% for the year.
The market has swiftly adjusted its expectations, now pricing in a higher likelihood of Federal Reserve rate cuts, with a 65% probability of a 50 basis point cut at the September meeting and anticipating about 1% in total rate cuts in 2024.[2]
Volatility, though often uncomfortable, is a normal and sometimes healthy part of the financial markets. Historical trends show that the stock market typically undergoes three 5% dips and one 10% correction each year.
All in all, big market swings are normal and part of the game.
Investors can long the largest 500 companies using our 5x US 500, 3x US 500.
Alternatively, trader can short the largest 500 companies using our -3x US 500.
Investors can long Nvidia using our 2x NVIDIA, 3x NVIDIA.
Alternatively, trader can short Nvidia using our -1x NVIDIA, -3x NVIDIA.
Investors can long Apple using our 2x Apple, 3x Apple.
Alternatively, trader can short Apple using our -1x Apple, -3x Apple.
Your capital is at risk if you invest. You could lose all your investment. Please see the full risk warning here.
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The value of an investment in ETPs may go down as well as up and past performance is not a reliable indicator of future performance. Trading in ETPs may not be suitable for all types of investor as they carry a high degree of risk. You may lose all of your initial investment. Only speculate with money you can afford to lose. Changes in exchange rates may also cause your investment to go up or down in value. Tax laws may be subject to change. Please ensure that you fully understand the risks involved. If in any doubt, please seek independent financial advice. Investors should refer to the section entitled “Risk Factors” in the relevant prospectus for further details of these and other risks associated with an investment in the securities offered by the Issuer.
This website is provided for your general information only and does not constitute investment advice or an offer to sell or the solicitation of an offer to buy any investment.
Nothing on this website is advice on the merits of any product or investment, nothing constitutes investment, legal, tax or any other advice nor is it to be relied on in making an investment decision. Prospective investors should obtain independent investment advice and inform themselves as to applicable legal requirements, exchange control regulations and taxes in their jurisdiction.
This website complies with the regulatory requirements of the United Kingdom. There may be laws in your country of nationality or residence or in the country from which you access this website which restrict the extent to which the website may be made available to you.
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Certain documents made available on the website have been prepared and issued by persons other than Leverage Shares Management Company. This includes any Prospectus document. Leverage Shares Management Company is not responsible in any way for the content of any such document. Except in those cases, the information on the website has been given in good faith and every effort has been made to ensure its accuracy. Nevertheless, Leverage Shares Management Company shall not be responsible for loss occasioned as a result of reliance placed on any part of the website and it makes no guarantee as to the accuracy of any information or content on the website. The description of any ETP Security referred to in this website is a general one. The terms and conditions applicable to investors will be set out in the Prospectus, available on the website and should be read prior to making any investment.
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This website is maintained by Leverage Shares Management Company, which is a limited liability company and is incorporated in Ireland with registered offices at 2 Grand Canal Square, Grand Canal Harbour, Dublin 2.
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Terms and Conditions
Notice
If you are not classified as an institutional investor, you will be categorised as a private/retail investor. At this time, we cannot send communications directly to private/retail investors. You are welcome to view the contents of this website.
If you are an ‘Institutional investor’, you affirm either that you are a Per Se Professional Client, or that you wish to be treated as an Eligible Counterparty Client, both as defined under the Markets in Financial Instruments Directive, or an equivalent in a jurisdiction outside the European Economic Area.
Risk Warnings
The value of an investment in ETPs may go down as well as up and past performance is not a reliable indicator of future performance. Trading in ETPs may not be suitable for all types of investor as they carry a high degree of risk. You may lose all of your initial investment. Only speculate with money you can afford to lose. Changes in exchange rates may also cause your investment to go up or down in value. Tax laws may be subject to change. Please ensure that you fully understand the risks involved. If in any doubt, please seek independent financial advice. Investors should refer to the section entitled “Risk Factors” in the relevant prospectus for further details of these and other risks associated with an investment in the securities offered by the Issuer.
This website is provided for your general information only and does not constitute investment advice or an offer to sell or the solicitation of an offer to buy any investment.
Nothing on this website is advice on the merits of any product or investment, nothing constitutes investment, legal, tax or any other advice nor is it to be relied on in making an investment decision. Prospective investors should obtain independent investment advice and inform themselves as to applicable legal requirements, exchange control regulations and taxes in their jurisdiction.
This website complies with the regulatory requirements of the United Kingdom. There may be laws in your country of nationality or residence or in the country from which you access this website which restrict the extent to which the website may be made available to you.
United States Visitors
The information provided on this site is not directed to any United States person or any person in the United States, any state thereof, or any of its territories or possessions.
Persons accessing this website in the European Economic Area
Access to this site is restricted to Non-U.S. Persons outside the United States within the meaning of Regulation S under the U.S. Securities Act of 1933, as amended (the “Securities Act”). Each person accessing this site, by so doing, acknowledges that: (1) it is not a U.S. person (within the meaning of Regulation S under the Securities Act) and is located outside the U.S. (within the meaning of Regulation S under the Securities Act); and (2) any securities described herein (A) have not been and will not be registered under the Securities Act or with any securities regulatory authority of any state or other jurisdiction and (B) may not be offered, sold, pledged or otherwise transferred except to persons outside the U.S. in accordance with Regulation S under the Securities Act pursuant to the terms of such securities. None of the funds on this website are registered under the United States Investment Advisers Act of 1940, as amended (the “Advisers Act”).
Exclusion of Liability
Certain documents made available on the website have been prepared and issued by persons other than Leverage Shares Management Company. This includes any Prospectus document. Leverage Shares Management Company is not responsible in any way for the content of any such document. Except in those cases, the information on the website has been given in good faith and every effort has been made to ensure its accuracy. Nevertheless, Leverage Shares Management Company shall not be responsible for loss occasioned as a result of reliance placed on any part of the website and it makes no guarantee as to the accuracy of any information or content on the website. The description of any ETP Security referred to in this website is a general one. The terms and conditions applicable to investors will be set out in the Prospectus, available on the website and should be read prior to making any investment.
Leverage Investment
Leverage Shares exchange-traded products (ETPs) provide leveraged exposure and are only suitable for experienced investors with knowledge of the risks and potential benefits of leveraged investment strategies.
Cookies
Leverage Shares Management Company may collect data about your computer, including, where available, your IP address, operating system and browser type, for system administration and other similar purposes (click here for more information). These are statistical data about users’ browsing actions and patterns, and they do not identify any individual user of the website. This is achieved by the use of cookies. A cookie is a small file of letters and numbers that is put on your computer if you agree to accept it. By clicking ‘I agree’ below, you are consenting to the use of cookies as described here. These cookies allow you to be distinguished from other users of the website, which helps Leverage Shares Company provide you with a better experience when you browse the website and also allows the website to be improved from time to time. Please note that you can adjust your browser settings to delete or block cookies, but you may not be able to access parts of our website without them.
This website is maintained by Leverage Shares Management Company, which is a limited liability company and is incorporated in Ireland with registered offices at 2 Grand Canal Square, Grand Canal Harbour, Dublin 2.
By clicking you agree to the Terms and Conditions displayed.
