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On Apr 20 01:11 PM BlackFox wrote:
Apr 22 17:10 pm
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All Comments by Eric Peterson »3x ETFs Are Wealth Destroyers [View article]
> Looks like the best thing to do long term is to short these ETFs.
> No way you will end up losing your money.
Shorting an equal dollar amount of FAS and FAZ and holding for several weeks or months is an interesting idea, but that will make money in a choppy market that goes nowhere.
In a strongly trending market you lose big with that strategy. The loss on one position will be much greater than the profit on the other position. The price of one fund can only go down to zero (resulting in a 100% profit on a short position) but the price of the other fund would much more than double, so you lose.