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David Fry
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David Fry writes a subscription newsletter focused on technical analysis of exchange-traded funds, called ETF Digest (www.etfdigest.com). Dave founded the ETF Digest in 2001 and was among the very first to see the need for a publication that provided individual investors with information and... More
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  • TOP 10 LEVERAGED BOND ETFs 0 comments
    Feb 29, 2012 4:32 PM | about stocks: AGQ, SLV, TQQQ, ZSL, TECS

    With inflation pressures either rising or falling and with the dollar in decline it's important to have portfolio protection for fixed-income portfolios. A more aggressive way to do this is through leveraged fixed-income long or short ETFs. More conservative investors will find inverse bond issues more to their liking.

    If for any reason interest rates should suddenly experience a sharp move higher, leveraged short ETFs allow fixed income investors a way to hedge their exposure and catch-up with fast-moving markets.

    This sector nevertheless is most suited to speculators since, even with the leverage employed, it still may be less than with trading alternatives like options or futures. Once again these exist for speculators primarily to use in a tactical manner most likely.

    Given accommodative monetary policies across the globe it may seem untimely to hedge or short bonds. In fact recently the U.S. Fed has stated they'll keep interest rates low beyond 2013 perhaps making the use of these products untimely. But, down the road it's helpful to have these products available when you need them.


    Stocks: AGQ, SLV, TQQQ, ZSL, TECS
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