market ace

Distressing Details of the UltraShorts

I have had terrible results holding several double inverse ETF's for several months now and in the future would only trade them very short term. Even with their big dividends (Which are taxable even though they are just return of capital) the results are not very good. This seems to be because they are not just short the market long term, but adjust every day so your returns literally diminish over time as each day they adjust the basis of their short positions. I had bought these as long term protection against the market, but would be much better off with Puts. Live and learn.

Distressing Details of the UltraShorts

USO is a commodities trading partnership and is not = to a barrel of oil like a gold ETF. I have had terrible results with this in the past and when you get a K-1 showing commodity trading gains or losses totally unrelated to the stock price it is not a pleasant shock. So far the new UCO seems to be doing amuch better job of tracking real oil prices.


On Jan 23 03:59 PM Clare123456 wrote:

> Please comment on USO performance long term.Does it suffer from the
> same malais?