A Leveraged ETF Warning Again. Yawn - Don Dion

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Don Dion is the owner and Chief Investment Officer of DRD Investments, LLC, based in Naples, Fl. and Williamstown, Ma., a family office focused on managing a long/short hedge fund, real estate assets and various other financial assets for the Dion family. Mr. Dion is also the trustee of the Dion... More

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A Leveraged ETF Warning Again. Yawn 1 comment

Aug 19, 2009 11:17 AM | about stocks: FAS, FAZ, UBS, MS

The Securities and Exchange Commission and the Financial Industry Regulatory Authority are back to issuing warnings about leveraged ETFs, but they're not offering any advice you haven't already heard countless times, from the issuers themselves no less.

FINRA and the SEC repeated the same advice I and others have repeatedly offered, over and over again and has been well known since the advent of inverse mutual funds several years ago. These funds track…READ MORE

Themes: Leveraged ETF, FINRA, SEC, Direxion, Inverse ETF Stocks: FAS, FAZ, UBS, MS

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Bill L. Comments (682)

This is just a symptom of the overall uneducated investors/speculators operating in the market. This problem occurs in the indexes as well regardless of leverage; a one percent drop in the S&P takes more than a one percent increase to break even. The same could be said about any high beta issue. These products work exactly how they were made to, people just don't know what they are buying.

The solution is quite simple; investors have to be educated. Investing is a serious business. It would be foolish for one to go into ANY business (especially one as esoteric as speculating) without being educated and expect excellent results.

Thanks Don, and to others who are bringing issues like these into the public.

19 Aug 2009, 11:45 AM Reply Like