one eye

Fixing the Leveraged ETF Mess

There is no doubt that they are volatile. But that is exactly the Point for a Buy and Hold strategy. FAS, up and down like a yo-yo but had you bougth and held since Mid-March, you would be up a 100%.

Which is probably much more than the Ins/Outs of traders who have taken Losses along the way.

Fixing the Leveraged ETF Mess

Leveraged ETF/ETNs are good for however long you wish to hold them.

Pray tell. What is the Difference between holding an unleveraged ETF and a Leveraged one? Forever if need be.

Those in GLD, have a "buy and hold" mentality. Its their insurance in troubled times. But "Leverage" it by any means whatsover and it becomes a short term Traders facility?

Give me a Break, "Pigeonholing" Leverage as a Domain for Traders Only is "Hubris" on the part of Traders. LEAPS have been around for Decades, they have been used By Investors Long before the Current Trading environment became the Norm.

Trade Away. I'll Invest with my new found leverage.

Fixing the Leveraged ETF Mess

ETNs also, don't forget these little puppies, like DXO.

I wish Direxion had a direct oil play.

I held DXO from $3 to $4.60, 2 months. I put it away and ignored it until I decided it was time to invest in something else. I still have DAG and DYY, now around 3 months.

Don't know where they are at and I don't care. Buy & Hold. I know they are going to go much higher by the end of 2010. If Direxion had equivalents, I would be in them with the same attitude.

Fixing the Leveraged ETF Mess

For the average Joe, Leveraged ETFs may be the only way left to to recoup the Massive losses incurred during the Bear. Since I'm in the Total Bull Camp, Golden Cross variety, a 20% move in the Averages will help me recoup those losses and then some, especially if I do not like picking Individual stocks but have an Idea of the Sector I would like to be in.

On the other side, Bear Index ETFs can be used to insure against my Bullish nature. No matter what happens, something will go Up.

All Original 3x ETFs Are Down Over Last Six Months

Freya is up 100% on FAS with her Buy/Hold strategy. She still holds it.

I'm up only 24% but I've held on to it for only a week.

Unbeknownst to her, I picked up DXO around $3 because she has been holding it for over a month.

You spot a Trend, you buy and hold until that trend changes.

Bill: Thanks for the ERY, I plan to hold DXO until Oil whether WTI or Brent approaches $64. I'm not greedy, that's her target.