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IS GOLD A GOOD INVESTMENT? THIS IS WHAT YOU SHOULD KNOW – KAKE

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Originally Posted On: https://bonsaifinance.com/personal-finance/is-gold-a-good-investment-this-is-what-you-should-know/

When people buy gold, it’s usually for three reasons, and what’s interesting is the reasons aren’t what we think they will be. People who wonder if gold a good investment may be interested to know what the top three reasons are for buying it. The three reasons most commonly used for buying gold are:

  1. Gold becomes an investor’s hedge against the economy.
  2. Gold provides investors a safe haven no matter what’s going on in the economy.
  3. Gold’s a direct investment that seldom loses value.

When you buy gold most of the time, you don’t have to worry about a stock market crash or a tanked economy. Many people think that no matter what’s going on in the world, gold insulates them from most of the fallout.

It doesn’t even matter if there’s an economic collapse. Gold is also widely considered a true hedge against inflation. Read on to discover if gold is a good investment and detailed reasons as to why that may be true or false.

Editor’s note: If you like this article, feel free to join the conversation and leave your comments at the bottom!
Check out for more on personal finance tips.

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Is Gold a Good Investment?

The demand and value for gold are often defined and governed by the demand for jewelry, technology, or industry reasons. Gold’s value definition is also set by central banks and investment firms. In fact, if people, in general, didn’t value gold, gold would cease being a valuable investment tool.

One of the most common reasons people invest in gold that’s part of the three listed reasons is so they can use it as a hedge. When using gold as a hedge, you’re attempting to secure your investment dollars. The gold serves as a way you can offset any other investment you have that may incur losses.

But there’s also another reason to buy gold as an investment. Gold can serve as collateral to secure loans. Any investment you have can serve as collateral for almost any type of loan you need.

Empirical evidence researched in the U.S., Britain, and Germany in different colleges from Trinity College to University of Western Australia found that gold is an effective hedge against stocks falling in price. Yet, there are other empirical studies that state gold isn’t an effective hedge against falling stock prices.

Is there a clear, cut way to find out if gold is or isn’t an effective and valuable investment?

Gold Serves as an Effective Hedge Against Stocks

Most of the time, there are geopolitical worries in various countries across the world’s stage. In 2019, the market is worried about Brexit talks in the U.S., the political divide going on in the U.S., the impact of tariffs on the economy, and more. All of these situations can make gold seem like a stable, enriched investment that doesn’t need to worry about any geopolitical event no matter where it’s originating.

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That’s because gold represents the past, present, and future. Gold is so basic as an investment it gives investors no quarterly reports or dividend yields. This year gold futures price per ounce is about $1500.

The World Gold Council reports if stock prices rise more than two standard deviations, the value of gold goes up too. That has much to do with gold being used as a diversification tool that serves as a consumer good, a high-price luxury item and an investment.

Gold Does Not Serve as an Effective Hedge Against Stocks

In the past few years, gold has fared better than other precious metals like silver or platinum. But gold has also presented stalled growth as the value of paper currency eroded. Gold’s future performance can be described as risky or uncertain due to its stalled growth pattern seen on and off throughout the past few years.

Then you have the whole problem about when to pull out of gold as an investment when you’re using it as a hedge against inflation or geopolitical risk. The Federal Reserve quantitative easing program is a very liberal policy that ensured gold prices rose and they did so admirably. But, no one can predict anymore which way gold will go and when.

Gold Is a Safe Haven Investment

Gold is unique as an investment tool because 90% of gold demand is based on demand. It’s the simple principle of people wanting a product because there’s a value attached to it. Right or wrong, the value attached makes the product have demand.

The financial result is the more people demand to have the product, the more the product goes up in value and price. What’s more the world has always used gold as a form of currency or wealth asset regardless of the money system the society used. Gold also has some intrinsic value because you can’t make more of it when you want some.

Supply and demand also affect the price of gold because it’s a precious metal that can’t be made and there’s a limited supply of it. It’s the physical form of gold that gives it intrinsic value and makes it a wonderful safe-haven investment.

Gold Isn’t a Safe Haven Investment

You can go to many articles and read the advice, facts, and figures while perusing the information and know most companies are trying to give you the latest and greatest details so you can make educated investment decisions. Many investors believe that gold does store value well, but it doesn’t grow your investment, and therefore, while it does serve in part as a safe haven, it doesn’t complete the definition. The reason gold is viewed by some investors as a possible investment safe haven is the definition of what features comprise a safe haven investment.

The definition of safe haven changes all the time. Gold becomes a great safe haven when there are equity market issues. Yet, gold isn’t that great of a safe haven when U.S. Treasury Bonds are strong and serving as superior safe-haven assets.

Gold Is a Direct Investment that Never Loses Value

Many financial advisors recommend you buy gold as an investment due to its steady, solid value. But those same advisers may tell you to buy only about 5% of your overall investment stake in gold. That’s because it can be a financial catastrophe when you don’t know when or how to move it as an investment diversifier.

Nine times out of ten, gold doesn’t move in tandem with stock. That’s because gold is neither a liability nor a security. Gold’s value will never fall to zero, and it is a low-risk investment.

There’s no reason you shouldn’t buy gold if you learn how to buy it, use it, sell it, and store it. You need a gold strategy, and it’s not an easy investment to make or govern because its an asset that’s sold off out of fear when the price of gold drops. That’s never when you should sell the gold assets in your portfolio.

Gold Isn’t a Direct Investment that Never Loses Value

There’s rarely a lot of liquidity in your gold investment, and you will pay for any storage or insurance costs you need to have for the gold in your investment portfolio. The returns on your gold are sometimes not as healthy or grow as well as some of your other investments. Also, your gold investment doesn’t contribute to overall economic growth.

Equity, bonds, bank deposits all offer something to the economy to keep it flowing in a positive direction. Gold doesn’t provide any of the stimuli that are needed from time to time in the economy. Then there’s trying to figure out where to secure the gold so a thief can’t get to it while you’re waiting for the gold’s value to go up and you can sell it at a profit or buy more investment portfolio assets.

The Bottom Line

The bottom line on whether or not gold is a good investment can be argued for decades by various investors, financial advisors, and everyone in-between because almost all the arguments about gold have facts to back them up. There are just as many facts that back up positive reasons why you do need to invest in gold as why you want to stay away from it as an investment portfolio asset. The best way forward with gold is to use it as an investment tool when you buy it but also offset it with other financial assets in your investment portfolio.

That way, no matter what’s going up or down in the market, you’ve covered your bases and kept yourself above taking a direct hit.

Your Next Investment Step

As you’re determining if and when is gold a good investment, keep in mind there’s plenty of informational articles out there to investigate if you need more details on gold. Something to keep in mind is gold has been valued almost since the beginning of civilization, and as such it holds not only investment value but also historical and psychological pull on all of us.

When you’re ready to take your next investment decision step, reach out to someone who can provide you with more information about the facts and figures, you need to make an educated analysis. The difference between being in the know with your investment decisions and just assuming you know enough to make a decision can mean the difference between a financial mistake or a valuable asset for your future.

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Are Compagnie Du Mont-Blanc’s (EPA:MLCMB) Returns On Investment Worth Your While? – Yahoo Finance

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<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="Today we'll evaluate Compagnie Du Mont-Blanc (EPA:MLCMB) to determine whether it could have potential as an investment idea. Specifically, we’re going to calculate its Return On Capital Employed (ROCE), in the hopes of getting some insight into the business.” data-reactid=”28″>Today we’ll evaluate Compagnie Du Mont-Blanc (EPA:MLCMB) to determine whether it could have potential as an investment idea. Specifically, we’re going to calculate its Return On Capital Employed (ROCE), in the hopes of getting some insight into the business.

First up, we’ll look at what ROCE is and how we calculate it. Second, we’ll look at its ROCE compared to similar companies. And finally, we’ll look at how its current liabilities are impacting its ROCE.

What is Return On Capital Employed (ROCE)?

<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="ROCE is a measure of a company's yearly pre-tax profit (its return), relative to the capital employed in the business. All else being equal, a better business will have a higher ROCE. In brief, it is a useful tool, but it is not without drawbacks. Author Edwin Whiting says to be careful when comparing the ROCE of different businesses, since ‘No two businesses are exactly alike.” data-reactid=”31″>ROCE is a measure of a company’s yearly pre-tax profit (its return), relative to the capital employed in the business. All else being equal, a better business will have a higher ROCE. In brief, it is a useful tool, but it is not without drawbacks. Author Edwin Whiting says to be careful when comparing the ROCE of different businesses, since ‘No two businesses are exactly alike.

How Do You Calculate Return On Capital Employed?

The formula for calculating the return on capital employed is:

<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="Return on Capital Employed = Earnings Before Interest and Tax (EBIT) ÷ (Total Assets – Current Liabilities)” data-reactid=”34″>Return on Capital Employed = Earnings Before Interest and Tax (EBIT) ÷ (Total Assets – Current Liabilities)

Or for Compagnie Du Mont-Blanc:

0.074 = €20m ÷ (€321m – €58m) (Based on the trailing twelve months to May 2019.)

<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="Therefore, Compagnie Du Mont-Blanc has an ROCE of 7.4%.” data-reactid=”37″>Therefore, Compagnie Du Mont-Blanc has an ROCE of 7.4%.

<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content=" View our latest analysis for Compagnie Du Mont-Blanc ” data-reactid=”38″> View our latest analysis for Compagnie Du Mont-Blanc

Does Compagnie Du Mont-Blanc Have A Good ROCE?

When making comparisons between similar businesses, investors may find ROCE useful. Using our data, Compagnie Du Mont-Blanc’s ROCE appears to be around the 6.6% average of the Hospitality industry. Aside from the industry comparison, Compagnie Du Mont-Blanc’s ROCE is mediocre in absolute terms, considering the risk of investing in stocks versus the safety of a bank account. Investors may wish to consider higher-performing investments.

The image below shows how Compagnie Du Mont-Blanc’s ROCE compares to its industry, and you can click it to see more detail on its past growth.

ENXTPA:MLCMB Past Revenue and Net Income March 28th 2020ENXTPA:MLCMB Past Revenue and Net Income March 28th 2020

<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="It is important to remember that ROCE shows past performance, and is not necessarily predictive. ROCE can be deceptive for cyclical businesses, as returns can look incredible in boom times, and terribly low in downturns. This is because ROCE only looks at one year, instead of considering returns across a whole cycle. If Compagnie Du Mont-Blanc is cyclical, it could make sense to check out this free graph of past earnings, revenue and cash flow.” data-reactid=”54″>It is important to remember that ROCE shows past performance, and is not necessarily predictive. ROCE can be deceptive for cyclical businesses, as returns can look incredible in boom times, and terribly low in downturns. This is because ROCE only looks at one year, instead of considering returns across a whole cycle. If Compagnie Du Mont-Blanc is cyclical, it could make sense to check out this free graph of past earnings, revenue and cash flow.

Do Compagnie Du Mont-Blanc’s Current Liabilities Skew Its ROCE?

Current liabilities include invoices, such as supplier payments, short-term debt, or a tax bill, that need to be paid within 12 months. The ROCE equation subtracts current liabilities from capital employed, so a company with a lot of current liabilities appears to have less capital employed, and a higher ROCE than otherwise. To counter this, investors can check if a company has high current liabilities relative to total assets.

Compagnie Du Mont-Blanc has total assets of €321m and current liabilities of €58m. Therefore its current liabilities are equivalent to approximately 18% of its total assets. This is a modest level of current liabilities, which would only have a small effect on ROCE.

The Bottom Line On Compagnie Du Mont-Blanc’s ROCE

<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="If Compagnie Du Mont-Blanc continues to earn an uninspiring ROCE, there may be better places to invest. Of course, you might find a fantastic investment by looking at a few good candidates. So take a peek at this free list of companies with modest (or no) debt, trading on a P/E below 20. ” data-reactid=”59″>If Compagnie Du Mont-Blanc continues to earn an uninspiring ROCE, there may be better places to invest. Of course, you might find a fantastic investment by looking at a few good candidates. So take a peek at this free list of companies with modest (or no) debt, trading on a P/E below 20.

<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="If you like to buy stocks alongside management, then you might just love this free list of companies. (Hint: insiders have been buying them).” data-reactid=”64″>If you like to buy stocks alongside management, then you might just love this free list of companies. (Hint: insiders have been buying them).

<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned.

We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Thank you for reading.” data-reactid=”65″>If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned.

We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Thank you for reading.

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AG Mortgage Investment Trust, Inc. Provides Updates as of March 27, 2020. – Business Wire

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NEW YORK–(BUSINESS WIRE)–AG Mortgage Investment Trust, Inc. (NYSE: MITT) (the “Company”) announced today that it is providing updates on several matters pertaining to the Company.

Update on Agency MBS Portfolio

In an effort to prudently manage its portfolio through unprecedented market volatility and preserve long-term stockholder value, on March 23, 2020 the Company completed the sale of the Company’s portfolio (the “Agency Portfolio”) of residential mortgage-backed securities issued or guaranteed by a U.S. government-sponsored entity (“Agency MBS”). After satisfaction of an aggregate of approximately $880 million of repurchase financing obligations with respect to the Agency Portfolio, the transaction netted the Company approximately $38 million of cash proceeds through T+0 settlement. After giving effect to the sale of the Agency Portfolio, the Company no longer owns any whole pool Agency MBS and as of close of business on March 27, 2020, the Company has approximately $78 million of cash and cash equivalents on hand.

Update on Financing Arrangements

On March 24, 2020, the Company received written notices from certain affiliates of Royal Bank of Canada (“RBC”) alleging that events of default had occurred with respect to various financing agreements. The Company disputes RBC’s notices of events of default and filed a suit in federal district court in New York describing the wrongful conduct by RBC and seeking both to enjoin RBC from selling the Company’s collateral securities as well as damages. The Company has also received notifications from several additional financing counterparties of alleged events of default under their financing agreements, and of certain of those counterparties’ intentions to accelerate the Company’s and such subsidiaries’ performance obligations under the relevant agreements.

Under the terms of the applicable financing arrangements, if the Company fails to deliver additional collateral or otherwise meet margin calls when due, the financing counterparties may demand immediate payment by the Company of the aggregate outstanding financing obligations owed to such counterparties, and if such financing obligations are not paid, may sell the securities and apply the proceeds to the Company’s financing obligations and/or take ownership of the securities securing the Company’s financing obligations. The Company may also be liable for a shortfall if the proceeds from such sale or value of such securities is less than the relevant financing obligation.

As previously announced, on Monday, March 23, 2020, the Company notified its financing counterparties that it was not in a position to fund the margin calls it received on March 23, 2020, and that the Company did not expect to be in a position to fund the anticipated volume of future margin calls under its financing arrangements in the near term as a result of market disruptions created by the COVID-19 pandemic.

Since March 23, 2020, the Company and several of its subsidiaries have received notifications from several financing counterparties of alleged events of default under their financing agreements, and of certain of those counterparties’ intentions to accelerate the Company’s and such subsidiaries’ performance obligations under the relevant agreements. The Company and its subsidiaries have disputed certain of those notices. However, in the event of a default under one or more of those agreements, financial and other obligations under such agreements, and in some cases the Company’s obligations as a guarantor, may be accelerated and the counterparties may take ownership of the securities pledged to secure the financing obligations by the Company or its subsidiaries. Certain counterparties have informed the Company that they have sold the securities pledged to secure the financing obligations. The Company and its subsidiaries also may be subject to penalties under those agreements and may suffer cross-default claims from its other lenders.

The Company continues to engage in discussions with its financing counterparties with regard to entering into forbearance agreements pursuant to which each counterparty would agree to forbear from exercising its rights and remedies with respect to an event of default under the applicable financing arrangement for an agreed-upon period. The Company cannot predict whether its financing counterparties will enter into a forbearance agreement, the timing of any such agreement, or the terms thereof.

Update on Dividends

On March 27, 2020, the Company announced that the Board has approved a suspension of the Company’s quarterly dividends on the Company’s common stock, the Company’s 8.25% Series A Cumulative Redeemable Preferred Stock, the Company’s 8.00% Series B Cumulative Redeemable Preferred Stock, and the Company’s 8.000% Series C Fixed-to-Floating Rate Cumulative Redeemable Preferred Stock, beginning with the common dividends that normally would have been declared in March 2020 and the preferred dividends that would have been declared in May 2020. The Board’s decision reflects the Company’s continuing focus on conserving capital and improving its liquidity position during the current market volatility.

ABOUT AG MORTGAGE INVESTMENT TRUST, INC.

AG Mortgage Investment Trust, Inc. is a hybrid mortgage REIT that opportunistically invests in and manages a diversified risk-adjusted portfolio of Agency RMBS and Credit Investments, which include Residential Investments and Commercial Investments. AG Mortgage Investment Trust, Inc. is externally managed and advised by AG REIT Management, LLC, a subsidiary of Angelo, Gordon & Co., L.P., an SEC-registered investment adviser that specializes in alternative investment activities.

FORWARD LOOKING STATEMENTS

This press release includes “forward-looking statements” within the meaning of the safe harbor provisions of the United States Private Securities Litigation Reform Act of 1995 related to the Company’s outstanding indebtedness and the status of our ongoing discussions with our financing counterparties, among others. Forward-looking statements are based on estimates, projections, beliefs and assumptions of management of the Company at the time of such statements and are not guarantees of future performance. Forward-looking statements involve risks and uncertainties in predicting future results and conditions. Actual results and outcomes could differ materially from those projected in these forward-looking statements due to a variety of factors, including, without limitation, changes in interest rates, changes in default rates, changes in the yield curve, changes in prepayment rates, the availability and terms of financing, changes in the market value of our assets, general economic conditions, conditions in the market for Agency RMBS, Non-Agency RMBS, ABS and CMBS securities, Excess MSRs and loans, our ability to predict and control costs, conditions in the real estate market, legislative and regulatory changes that could adversely affect the business of the Company and the ongoing spread and economic effects of the novel coronavirus (COVID-19). Additional information concerning these and other risk factors are contained in the Company’s filings with the SEC, including its most recent Annual Report on Form 10-K and subsequent filings. Copies are available free of charge on the SEC’s website, http://www.sec.gov/. All information in this press release is as of March 27, 2020. The Company undertakes no duty to update any forward-looking statements to reflect any change in its expectations or any change in events, conditions or circumstances on which any such statement is based.

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Direxion Expedites the Change in Investment Objectives and Strategies of Ten Daily Leveraged and Daily Inverse Leveraged Funds – Yahoo Finance

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<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="Earlier Effective Date” data-reactid=”12″>Earlier Effective Date

<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="NEW YORK, March 27, 2020 /PRNewswire/ — The investment objective and strategy of each Fund in the table below is currently to seek daily leveraged, or daily inverse leveraged, investment results, before fees and expenses, of 300% or -300%, as applicable, of the performance of its underlying index. Effective after market close on March 31, 2020 each Fund’s investment objective and strategy will change to seek daily leveraged, or daily inverse leveraged, investment results, before fees and expenses, of 200% or -200%, as applicable, of the performance of its underlying index, as shown below:” data-reactid=”13″>NEW YORK, March 27, 2020 /PRNewswire/ — The investment objective and strategy of each Fund in the table below is currently to seek daily leveraged, or daily inverse leveraged, investment results, before fees and expenses, of 300% or -300%, as applicable, of the performance of its underlying index. Effective after market close on March 31, 2020 each Fund’s investment objective and strategy will change to seek daily leveraged, or daily inverse leveraged, investment results, before fees and expenses, of 200% or -200%, as applicable, of the performance of its underlying index, as shown below:

Ticker

Fund

Underlying Index

New Daily
Leveraged
Investment
Objective

(before fees and
expenses)

BRZU

Direxion Daily MSCI Brazil Bull 3X
Shares

MSCI Brazil 25/50 Index

200%

RUSL

Direxion Daily Russia Bull 3X Shares

MVIS Russia Index

200%

NUGT

Direxion Daily Gold Miners Index
Bull 3X Shares

NYSE Arca Gold Miners Index

200%

DUST

Direxion Daily Gold Miners Index
Bear 3X Shares

-200%

JNUG

Direxion Daily Junior Gold Miners
Index Bull 3X Shares

MVIS Global Junior Gold Miners
Index

200%

JDST

Direxion Daily Junior Gold Miners
Index Bear 3X Shares

-200%

ERX

Direxion Daily Energy Bull 3X
Shares

Energy Select Sector Index

200%

ERY

Direxion Daily Energy Bear 3X
Shares

-200%

GUSH

Direxion Daily S&P Oil & Gas Exp.
& Prod. Bull 3X Shares

S&P Oil & Gas Exploration &
Production Select Industry Index

200%

DRIP

Direxion Daily S&P Oil & Gas Exp.
& Prod. Bear 3X Shares

-200%

In addition, the “3X” in each Fund’s name will be replaced with “2X”as follows:

Ticker

Current Fund Name

New Fund Name

BRZU

Direxion Daily MSCI Brazil Bull 3X
Shares

Direxion Daily MSCI Brazil Bull 2X
Shares

RUSL

Direxion Daily Russia Bull 3X Shares

Direxion Daily Russia Bull 2X Shares

NUGT

Direxion Daily Gold Miners Index Bull
3X Shares

Direxion Daily Gold Miners Index Bull 2X
Shares

DUST

Direxion Daily Gold Miners Index Bear
3X Shares

Direxion Daily Gold Miners Index Bear
2X Shares

JNUG

Direxion Daily Junior Gold Miners Index
Bull 3X Shares

Direxion Daily Junior Gold Miners Index
Bull 2X Shares

JDST

Direxion Daily Junior Gold Miners Index
Bear 3X Shares

Direxion Daily Junior Gold Miners Index
Bear 2X Shares

ERX

Direxion Daily Energy Bull 3X Shares

Direxion Daily Energy Bull 2X Shares

ERY

Direxion Daily Energy Bear 3X Shares

Direxion Daily Energy Bear 2X Shares

GUSH

Direxion Daily S&P Oil & Gas Exp. &
Prod. Bull 3X Shares

Direxion Daily S&P Oil & Gas Exp. &
Prod. Bull 2X Shares

DRIP

Direxion Daily S&P Oil & Gas Exp. &
Prod. Bear 3X Shares

Direxion Daily S&P Oil & Gas Exp. &
Prod. Bear 2X Shares

<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="Each Fund had previously disclosed its plan to make these changes effective May 19, 2020. Due to recent market volatility and related developments, these changes will now occur on the earlier date stated above. For these same reasons and the need to transition each Fund’s portfolio to its new investment objective and strategy; it is likely that some or all of the Funds will not achieve their current investment objectives of seeking daily leveraged, or daily inverse leveraged, investment results, before fees and expenses, of 300% or -300%, as applicable, of the performance of their underlying index.” data-reactid=”19″>Each Fund had previously disclosed its plan to make these changes effective May 19, 2020. Due to recent market volatility and related developments, these changes will now occur on the earlier date stated above. For these same reasons and the need to transition each Fund’s portfolio to its new investment objective and strategy; it is likely that some or all of the Funds will not achieve their current investment objectives of seeking daily leveraged, or daily inverse leveraged, investment results, before fees and expenses, of 300% or -300%, as applicable, of the performance of their underlying index.

<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="About Direxion:” data-reactid=”20″>About Direxion:

<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="Direxion equips investors who are driven by conviction with ETF solutions built for purpose and fine-tuned for precision. These solutions are available for a broad spectrum of investors, whether executing short-term tactical trades, investing in macro themes, or building long-term asset allocation strategies. Direxion's reputation is founded on developing products that precisely express market perspectives and allow investors to manage their risk exposure. Founded in 1997, the company has approximately $15 billion in assets under management as of&nbsp; December 31, 2019. For more information, please visit www.direxion.com.” data-reactid=”21″>Direxion equips investors who are driven by conviction with ETF solutions built for purpose and fine-tuned for precision. These solutions are available for a broad spectrum of investors, whether executing short-term tactical trades, investing in macro themes, or building long-term asset allocation strategies. Direxion’s reputation is founded on developing products that precisely express market perspectives and allow investors to manage their risk exposure. Founded in 1997, the company has approximately $15 billion in assets under management as of  December 31, 2019. For more information, please visit www.direxion.com.

<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="There is no guarantee that the Funds will achieve their investment objectives.” data-reactid=”22″>There is no guarantee that the Funds will achieve their investment objectives.

<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="For more information on all Direxion Shares daily leveraged ETFs, go to direxion.com, or call us at 866.301.9214.” data-reactid=”23″>For more information on all Direxion Shares daily leveraged ETFs, go to direxion.com, or call us at 866.301.9214.

Leveraged ETFs are not suitable for all investors and should be utilized only by investors who understand the risks associated with seeking daily leveraged and inverse investment results, and intend to actively monitor and manage their investments. Due to the daily nature of the leveraged and inverse investment strategies employed, there is no guarantee of long-term inverse returns. Past performance is not indicative of future results.

<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="An investor should carefully consider a Fund’s investment objective, risks, charges, and expenses before investing. A Fund’s prospectus and summary prospectus contain this and other information about the Direxion Shares. To obtain a Fund’s prospectus and summary prospectus call 866-716-0735 or visit our website at direxion.com. A Fund’s prospectus and summary prospectus should be read carefully before investing.” data-reactid=”25″>An investor should carefully consider a Fund’s investment objective, risks, charges, and expenses before investing. A Fund’s prospectus and summary prospectus contain this and other information about the Direxion Shares. To obtain a Fund’s prospectus and summary prospectus call 866-716-0735 or visit our website at direxion.com. A Fund’s prospectus and summary prospectus should be read carefully before investing.

<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="Direxion Shares Risks – An investment in the ETFs involves risk, including the possible loss of principal. The ETFs are non-diversified and include risks associated with concentration that results from an ETF’s investments in a particular industry or sector which can increase volatility. The use of derivatives such as futures contracts and swaps are subject to market risks that may cause their price to fluctuate over time. The ETFs do not attempt to, and should not be expected to, provide returns which are a multiple of the return of their respective index for periods other than a single day. For other risks including leverage, correlation, daily compounding, market volatility and risks specific to an industry or sector, please read the prospectus.” data-reactid=”26″>Direxion Shares Risks – An investment in the ETFs involves risk, including the possible loss of principal. The ETFs are non-diversified and include risks associated with concentration that results from an ETF’s investments in a particular industry or sector which can increase volatility. The use of derivatives such as futures contracts and swaps are subject to market risks that may cause their price to fluctuate over time. The ETFs do not attempt to, and should not be expected to, provide returns which are a multiple of the return of their respective index for periods other than a single day. For other risks including leverage, correlation, daily compounding, market volatility and risks specific to an industry or sector, please read the prospectus.

<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="Market Disruption Risk&nbsp;– Geopolitical and other events, including public health crises and natural disasters, have recently led to increased market volatility and significant market losses. Significant market volatility and market downturns may limit the Fund’s ability to sell securities and obtain short exposure to securities, and the Fund’s sales and short exposuresmay exacerbate the market volatility and downturn. Under such circumstances, the Fund may have difficulty achieving its investment objective for one or more trading days, which may adversely impact the Fund’s returns on those days and periods inclusive of those days. Alternatively, the Fund may incur higher costs (including swap financing costs) in order to achieve its investment objective and may be forced to purchase and sell securities (including other ETFs’ shares) at market prices that do not represent their fair value (including in the case of an ETF, its NAV) or at times that result in differences between the price the Fund receives for the security or the value of the swap exposure and the market closing price of the security or the market closing value of the swap exposure. Under those circumstances, the Fund’s ability to track its Index is likely to be adversely affected, the market price of Fund shares may reflect a greater premium or discount to NAV and bid-ask spreads in the Fund’s shares may widen, resulting in increased transaction costs for secondarymarket purchasers and sellers. The Fund may also incur additional tracking error due to the use of futures contracts or other securities that are not perfectly correlated to the Fund’s Index.” data-reactid=”27″>Market Disruption Risk – Geopolitical and other events, including public health crises and natural disasters, have recently led to increased market volatility and significant market losses. Significant market volatility and market downturns may limit the Fund’s ability to sell securities and obtain short exposure to securities, and the Fund’s sales and short exposuresmay exacerbate the market volatility and downturn. Under such circumstances, the Fund may have difficulty achieving its investment objective for one or more trading days, which may adversely impact the Fund’s returns on those days and periods inclusive of those days. Alternatively, the Fund may incur higher costs (including swap financing costs) in order to achieve its investment objective and may be forced to purchase and sell securities (including other ETFs’ shares) at market prices that do not represent their fair value (including in the case of an ETF, its NAV) or at times that result in differences between the price the Fund receives for the security or the value of the swap exposure and the market closing price of the security or the market closing value of the swap exposure. Under those circumstances, the Fund’s ability to track its Index is likely to be adversely affected, the market price of Fund shares may reflect a greater premium or discount to NAV and bid-ask spreads in the Fund’s shares may widen, resulting in increased transaction costs for secondarymarket purchasers and sellers. The Fund may also incur additional tracking error due to the use of futures contracts or other securities that are not perfectly correlated to the Fund’s Index.

The recent pandemic spread of the novel coronavirus known as COVID-19 has proven to be a market disrupting event. The impact of this virus, like other pandemics that may arise in the future, has negatively affected and may continue to negatively affect the economies of many nations, companies and the global securities and commodities markets, including by reducing liquidity in the markets. Adverse effects may be more pronounced for developing or emerging market countries that have less established health care systems. How long such events will last and whether they will continue or recur cannot be predicted.

<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="Distributor:&nbsp;Foreside&nbsp;Fund&nbsp;Services,&nbsp;LLC.” data-reactid=”33″>Distributor: Foreside Fund Services, LLC.

CONTACT:

James Doyle

JConnelly

973.850.7308

jdoyle@jconnelly.com

 

Cision

<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="View original content:http://www.prnewswire.com/news-releases/direxion-expedites-the-change-in-investment-objectives-and-strategies-of-ten-daily-leveraged-and-daily-inverse-leveraged-funds-301031155.html” data-reactid=”48″>View original content:http://www.prnewswire.com/news-releases/direxion-expedites-the-change-in-investment-objectives-and-strategies-of-ten-daily-leveraged-and-daily-inverse-leveraged-funds-301031155.html

SOURCE Direxion

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