Internet2k4

The 'Reflation' Top Ten Portfolio

Rayno,

GL above is right that the leveraged ETFs go off benchmark over time, the math is canvassed pretty well elsewhere - google. But I'd disagree it's unwise to hold them for a while. Many have been out for a couple of years: just chart the ones you hold or the ones GL discloses against their benchmarks to see how they've been performing as this mess has developed. For example, a two year chart of SPY vs SSO will show 35% vs 70% - not bad tracking. The SDS double short is "only" up 15% in absolute terms, but that's 50% better than the SPY. The less liquid or less well-designed ones don't do so well.