Jonathan Swift

Everybody Hates Leveraged ETFs

If we want to keep America's strengths alive we have to recognize that government paternalism is no substitute for expecting personal responsibility overall. Personal responsibility is the basis on which successful societies are dependent. That means accepting, among other things, that "fools and their money are soon parted!" If we don't let the poor decisions of individuals and institutions lead to failure (and the good decisions to lead to success), we do not have a viable, thriving free society.

Investors Fled out of Leveraged ETFs at Exactly the Wrong Time

Anyone who bought $10K of BGU (2X leveraged high cap ETF) in March is sitting on about $30K profit now about 6 months later. I did that with about $15K. Six months is just a little bit longer than 1 day.


On Sep 13 08:34 AM Brian O'Flanagan wrote:

> in the long run, the value of all leveraged ETFs will go to zero.
> They are never an appropriate investment for anybody with a holding
> period longer than 1 day.

The Truth About 3x ETFs and Long Term Investing

OK. One of the first intelligent blogs I've seen on why leveraged ETFs may not perform the way investors were thinking. But it is also way too negative about the possibilities for using these ETFs as hedging opportunities. The report repeats the usual blah-blah about how they are only supposed to be used for daily trades. Not True! I've done very well with using the periodic ups and downs to put in LIMIT BUYS and LIMIT SELLS over a few weeks that have netted huge gains over short time periods. As with so much else in trading, the key is to not get too eager or too greedy so that you are tempted to jump in and make changes to a workable strategy.