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Investors Fled out of Leveraged ETFs at Exactly the Wrong Time

The drive to regulate leveraged ETFs is all about the short funds not the long funds. The Gov is trying deparately to control the market. They do want to see a repeat of last winter/spring of 08 market declines. The Gov has done EVERYTHING within it's grasp to get control of the market. This rally has been a complete farce and now the Gov wants to curtail short selling to keep the market from tanking too fast. Leveraged ETFs are fine, never been marketed to the average investor. This is bunch of crap brought to you by the Gov.

7 ETFs to Short Right Now

Mr. Shaefer- I agree with your line of reasoning in most respects. In particular I believe you are correct that this is a manipulated market rally. However, I have moved money into the inverse ETFs in small amounts simply to hedge what I see as a significant risk of a market correction of 20-30%. The key is not the repayment of TARP but rather the desire to position the banks to weather the coming storm. When commercial loan defaults start in mass and the value of commercail real estate begins to plunge then the banks will be at their weakest. That is probably about 3 months away. The Gov is going to everything under the sun to prepare for that scenario. I think you may be a bit early to the table.