corey mendel

Absurd Inverse and Leveraged ETF Product Whining (Updated)

I'm still shaking my head. My intuition tells me you lost a substantial amount of money with ETF's? I bet you love options! Any advice? (chuckles)

On Jun 29 03:22 AM cameroni wrote:

> Absolute nonsense David,
>
> I am no fan of Cramer by the way but he is correct in some of his
> complaints against ETF's and in particular inverse ETF's. You need
> to read the small print on each and every one very, very carefully
> before investing. They are designed with a general suggestion of
> performance along lines that on the surface make complete sense but
> on a closer look (or loss) proves otherwise.
>
> I DO NOT RECOMMEND ETF's for novices. They are really very complex
> and do not usually mirror the market in an intuitive manner. They
> are an excellent way to lose money if you don't know the exact content
> and have all the time necessary to monitor all the aspects each entails.
>
>
> This is one of the biggest sucker plays ever invented. I stand by
> all my earlier remarks on the subject. To any investor I would advise
> that they study and become intimate with individual companies and
> invest accordingly. ETF indexing is just a lazy man's approach to
> playing the market and losing money (the easy way, as in very quickly).
>
>
> And finally, if you must use ETF's then do so judiciously and keep
> it very short term . Day traders territory only. High risk, high
> gain but also high loss. Use your head and read the details carefully
> before buying.
>
> This one comment you made David sums it up nicely:
> "Leveraged issues should be used strategically and tactically by
> experienced investors over short periods of time, which may include
> day-trading and time periods of just a few weeks".