SH: Mr. Market Is Paying More To Be Short S&P 500, Than Long (NYSEARCA:SH)

ProShares Short S&P500 (SH) is currently yielding 3.5-4% annually due to high interest rates, more than the S&P 500's dividend yield.

SH makes money by shorting the market through swap contracts and owning large cash positions. It benefits when stocks fall.

Metrics show extreme overvaluation (CAPE ratio, market cap/GDP) and sentiment (CNN Fear & Greed). Recession risk is high per yield curve inversion.

Despite time decay costs, SH has outperformed the S&P 500 over 3/6/12 months as cash yields offset losses.

SH could protect against a market decline in the typically weak September-October period. It offers a hedge without borrowing shares. Recommended position size is 5%.