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  • Bogle: Investors 'Getting Killed' in ETFs [View article]
    I have been bagging ETF's for a while on here as it seems everyone is addict to them on this site, i just do not buy the hype. Im glad to see im not alone on this. This is how Clive Maund "mining analyst", describes ETF'S at the present time, and i agree.

    "Some market observers have been making comments in the recent past to the effect that leveraged ETFs are a scam designed to sluice money from retail investors into the pockets of professionals. While we would concur with this it shouldn't really be surprising, as to the extent that they are a scam they are simply following the rich tradition of many Wall St financial instruments, and compared to sub-prime mortgages, for example, they are a "mom and pop" operation as many European banks and financial institutions still smarting from immense losses will attest. This is not to say that you can't make good money out of them at times - in the same way that an experienced gambler may enter a casino in Las Vegas with a fair chance of coming out richer, but knowing that whatever his fortunes, the house will always win. Right now there are some bear ETFs which have been driven down almost to zero by the big market rally that look set to do really well if the market heads south soon as expected, even taking into account the eroding time value of option elements comprising them and the suspected tendency of the management of these funds to use them as ATMs".

    Worth a "punt" on the long side maybe?
    Jun 19 11:41 am |Rating: +4 0 |Link to Comment
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