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To: RoosterRedux
Ha!

Nothing personal, Rooster. I know a guy who lost over $10 million using a leveraged ETF to bet that natural gas prices would rise, in early 2009. If he had just used futures contracts, he would 'only' have lost $7.0 million. The promoters actually dropped by his office and congratulated him on having such big balls. Their short leverage nat gas ETF traded at under 1% of its value three years before. Their long fund would not have come close to making up the difference. They keep doing negative splits to paper over the truth. As a result, I researched the topic. People have done peer-reviewed papers supporting what I told you. I would be happy to share.

33 posted on 01/11/2014 4:07:19 PM PST by Praxeologue
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To: Kennard
You and I both know that buying leverage ETF's (which are holding swaps most likely from Citicorp and Morgan) and futures contract ETF's and inverted or short ETF's are probably not a good idea.

This article is aimed at introducing mutual fund investors to good old basic index and sector ETF's which contain nothing more than the underlying stocks.

The Standard & Poors composite index (SPY) beats the living tar out of most mutual funds with very little costs.

To those considering ETF's, don't throw the baby out with Kennard's bath water.;-)

And Kennard, where's my share of your cocktail!

35 posted on 01/11/2014 4:14:20 PM PST by RoosterRedux (The only true wisdom is in knowing you know nothing -- Socrates)
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