Investors Fled out of Leveraged ETFs at Exactly the Wrong Time [View article]
This is nonsense, propaganda from the managers, shills, salesguys for NON-leveraged products. And the ignorant.
Agree with the author's premise that 'we have had a strongly trending bull market' and leveraged Bullish ETFs were an excellent tool for savvy investors in the past 4 months. However, practically ALL the money in leveraged ETFs is INSTITUTIONAL - professionals.
Another way to see the big players bailing on these 2x-3x bull ETFs? The great Bull run may be slow, halting, or reversing : is this the point or pivot, the moment to reduce risk? Time will tell if that's correct, premature or simply wrong.
The next wave of deleveraging will probably witness 'bank holiday' restrictions, and wouldn't you imagine leveraged short ETFs will be closed to retail investors then?
On Sep 13 08:34 AM Brian O'Flanagan wrote:
> in the long run, the value of all leveraged ETFs will go to zero. > They are never an appropriate investment for anybody with a holding > period longer than 1 day.
Investors Fled out of Leveraged ETFs at Exactly the Wrong Time [View article]
Agree with the author's premise that 'we have had a strongly trending bull market' and leveraged Bullish ETFs were an excellent tool for savvy investors in the past 4 months. However, practically ALL the money in leveraged ETFs is INSTITUTIONAL - professionals.
Another way to see the big players bailing on these 2x-3x bull ETFs? The great Bull run may be slow, halting, or reversing : is this the point or pivot, the moment to reduce risk? Time will tell if that's correct, premature or simply wrong.
The next wave of deleveraging will probably witness 'bank holiday' restrictions, and wouldn't you imagine leveraged short ETFs will be closed to retail investors then?
On Sep 13 08:34 AM Brian O'Flanagan wrote:
> in the long run, the value of all leveraged ETFs will go to zero.
> They are never an appropriate investment for anybody with a holding
> period longer than 1 day.