wulfmeister

Finally Time to Short U.S. Treasuries?

Seriously, You guys need to read the Barron's article in the Jan 12th issue regarding the problems with leveraged inverse closed-end funds, especially when holding long term. Think about it, if the index is at 100 and declines to 90, and you are in a 2x levered fund, then YOU are at 80. If then the index moves back to 100, you are now at 96. A tidy -4% LOSS. Day trade them, don't hold them. Over time this multiple only gets worse. This it NOT a long-term or even mid-term trade.


On Jan 06 10:07 AM Dan Lonowski wrote:

> I bought TBT on Dec 31. We'll see if I was too anxious. Gained 10%
> so far...