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  • Why Everything You've Heard About Leveraged ETFs Is Wrong [View article]
    This article rightly points out the "daily" distinction here. To re-emphasize, if you are in a sustained uptrend, great. You can actually exceed to "supposed by retail dummies" return - per the image above. However, all trends break eventually and due to daily rebalancing, you'll always have both long/short ends gradually approaching zero (Notice FAS and FAZ both had to do reverse splits recently?).

    This image here says it all. Notice what happened to both FAS [3X long] and FAZ [3X Short] in a market where underlying Financial 1X ETF was roughly flat. They both got crushed!!!

    www.darwinsfinance.com.../

    If you can actually find a broker and manage/hedge your risk for that "Black Swan event", these actually make for nice pairs/shorts.....for Traders that is....

    These are not suitable for a long term hold. Ever. By anyone...given the facts in both this article and aforementioned link. They are an ever-depreciating asset with time unless you miraculously catch a sustained uptrend that never breaks.
    Aug 13 17:23 pm |Rating: 0 0 |Link to Comment
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