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  • Why Leveraged and Derivatives-Based ETFs Are Dangerous  [View article]
    and I wrote 'a bank in Germany,' not, 'some bank in Germany' as you quoted me


    On Jul 22 11:40 AM tb1975 wrote:

    > It is Deutche Bank, Germany's largest bank...ever heard of too big
    > too fail?I know exactly what is going on, and I'm making money at
    > it.
    Jul 22 12:08 pm |Rating: +1 0 |Link to Comment
  • Why Leveraged and Derivatives-Based ETFs Are Dangerous  [View article]
    "Your strategy goes against everything I said in the article."

    That's why I started off my post with the words, "To be contrarian..."


    On Jul 22 10:52 AM Living4Dividends wrote:

    > your strategy goes against everything I said in the article. These
    > funds are not prudent for the long term investor. It's an ETN and,
    > it sounds like you arent sure of how the funds are being managed
    > "some bank in germany"
    Jul 22 11:42 am |Rating: +1 0 |Link to Comment
  • Why Leveraged and Derivatives-Based ETFs Are Dangerous  [View article]
    It is Deutche Bank, Germany's largest bank...ever heard of too big too fail?I know exactly what is going on, and I'm making money at it.


    On Jul 22 10:52 AM Living4Dividends wrote:

    > your strategy goes against everything I said in the article. These
    > funds are not prudent for the long term investor. It's an ETN and,
    > it sounds like you arent sure of how the funds are being managed
    > "some bank in germany"
    Jul 22 11:40 am |Rating: +2 0 |Link to Comment
  • Why Leveraged and Derivatives-Based ETFs Are Dangerous  [View article]
    To be contrarian, I like leveraged ETFs and ETNs. Yeah, you can't invest in them and not look for a week, but with which investment can you do that with?

    I own DGP. I've owned it since December '08. It is a 2X long gold fund. While gold has risen 13% since I bought in, DGP has risen 23%. Not exactly double, but not much slippage either.

    I invested in it to get more return than GLD. It has done that. I also did it for tax reasons- since it is an ETN, I can hold it for a year and pay 20% capital gains rather than the gold 'collectible' rate.

    I understand the risks involved. I understand it has to do with derivatives and a bank in Germany. I understand it was designed for short term trading. I don't care. I keep a close eye on it and it is making me money. I have limit orders in to protect profits. It's all good.
    Jul 22 09:58 am |Rating: +2 0 |Link to Comment
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