Even with the daily compounding and the management and associated fees... this is ridiculous.
1.5x the upside.
3x the downside.
I think I'll go back to good old fashioned, your broker's on the phone, margin call type leverage if I need 3x the exposure to a market that goes up or down 20% a month.
Better yet: high levels of cash after a 26% SP rally
5 Comments:
Basically: they're fucking awesome for shorting.
This blog was posted on 4/03/09. Given an almost 10% increase in April, being in cash maybe was not such a good idea after all...
Anonymous,
It would be terrific if you could post a nickname when you leave your comments in the future.
Maybe you might want to reread this post?
Anon,
You see I trade.
That means I can be 100% cash today and 100% invested tomorrow.
I take the opportunities mother market gives me, whenever and whatever they might be.
"mother market" ... I like that!
;)
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