If I am long in the Market...Should I buy an ultra long S & P etf? - ultra long etf
If I believe in the long term benefits in the stock market over the next 10 to 20 years. And assuming an average of 8%. over time, why not be entered into a leveraged ETF? The cost is .95%, while some funds ...
Saturday, January 9, 2010
Ultra Long Etf If I Am Long In The Market...Should I Buy An Ultra Long S & P Etf?
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6 comments:
I would go with this or with Rydex 2x S & P 500 (FTQ) .70% of the cost.
Ultra Long ETFs are day trading and short-term investments well. For the long term, they tend to lose their value because of their influence and their normal day to day volatility.
During a fall 2X leveraged ETF in the price range of 50% between 100 and 50 Then you need to rise 100% to return to previous price of 100.
At the same time, the underlying index, excluding the impact 2X Falls 25% 100-75. And he needs to win only 33.33%, to return to its previous price of 100.
And the problem is that if the profits of the underlying index 33.33%. Then only 2X Leveraged ETF 66.67% increase is not 100%, you must return to its previous prices. This means that the ETF Leveraged loses its value, even if the index is within a range of negotiations and not everywhere.
The only way to win with a leveraged ETF in the long run is, whether the stock market keeps going up and down, and without much volatility. It is possible, but unlikely to be achieved in the long term.
Ultra Long ETFs are day trading and short-term investments well. For the long term, they tend to lose their value because of their influence and their normal day to day volatility.
During a fall 2X leveraged ETF in the price range of 50% between 100 and 50 Then you need to rise 100% to return to previous price of 100.
At the same time, the underlying index, excluding the impact 2X Falls 25% 100-75. And he needs to win only 33.33%, to return to its previous price of 100.
And the problem is that if the profits of the underlying index 33.33%. Then only 2X Leveraged ETF 66.67% increase is not 100%, you must return to its previous prices. This means that the ETF Leveraged loses its value, even if the index is within a range of negotiations and not everywhere.
The only way to win with a leveraged ETF in the long run is, whether the stock market keeps going up and down, and without much volatility. It is possible, but unlikely to be achieved in the long term.
Ultra Long ETFs are day trading and short-term investments well. For the long term, they tend to lose their value because of their influence and their normal day to day volatility.
During a fall 2X leveraged ETF in the price range of 50% between 100 and 50 Then you need to rise 100% to return to previous price of 100.
At the same time, the underlying index, excluding the impact 2X Falls 25% 100-75. And he needs to win only 33.33%, to return to its previous price of 100.
And the problem is that if the profits of the underlying index 33.33%. Then only 2X Leveraged ETF 66.67% increase is not 100%, you must return to its previous prices. This means that the ETF Leveraged loses its value, even if the index is within a range of negotiations and not everywhere.
The only way to win with a leveraged ETF in the long run is, whether the stock market keeps going up and down, and without much volatility. It is possible, but unlikely to be achieved in the long term.
Ultra Long ETFs are day trading and short-term investments well. For the long term, they tend to lose their value because of their influence and their normal day to day volatility.
During a fall 2X leveraged ETF in the price range of 50% between 100 and 50 Then you need to rise 100% to return to previous price of 100.
At the same time, the underlying index, excluding the impact 2X Falls 25% 100-75. And he needs to win only 33.33%, to return to its previous price of 100.
And the problem is that if the profits of the underlying index 33.33%. Then only 2X Leveraged ETF 66.67% increase is not 100%, you must return to its previous prices. This means that the ETF Leveraged loses its value, even if the index is within a range of negotiations and not everywhere.
The only way to win with a leveraged ETF in the long run is, whether the stock market keeps going up and down, and without much volatility. It is possible, but unlikely to be achieved in the long term.
Given their beliefs Buy spy.
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