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This is a daily tracking triple leverage instrument - about as toxic as you can get. I still can't believe the SEC doesn't put the people who bundle and sell these sorts of instruments in jail.
Recs
few of these actually can beat the s&p but I would not put real money in to these ever. S&P 99% is always goes up and that 1% of scare happens once a decade especially with new technology or too much of a good thing. we do want our money to work for us and as long as humanity relies on monetary value for trade this works.
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This kind of triple ETF will always underperform over the long run due to the way it is constructed. Note: I am not saying you cannot make any money holding this ETF, just that over a prolonged time it will lose money. Just to prove, I closed 5 of them today, together with their 5 inverses, all at a positive score!
Update: make that 6, instead of 5...
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i wonder what the debt crisis will finally do once america defaults.
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It's going to rebound as soon as Bernanke learns to keep his mouth shut and Obama gets his hands off the helm.
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bridgeboy
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Oops. I missed on my timing here.
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This is basically like being able to put three times the money you have in a stock without having to pay interest on the money you are borrowing. Also, it is diversified against firm-specific risk and the underlying security is tracking the best sector out there, not just now but long term. A sector so strong that leverage will not be able to make a significant dent in the ETFs performance. Time to BUY, or be left behind.
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