Booms, Busts, and Recoveries Message Board

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Strategies & Market Trends : Booms, Busts, and Recoveries

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To: carranza2 who wrote (72158)	1/21/2010 3:17:41 PM
From: Snowshoe	Read Replies (1) of 74559

True, GDXJ is not explicitly leveraged in the sense of a 2X fund using options/futures. However, gold stocks have defacto leverage vs. the price of gold because they get dragged down in a general market crash. Smaller cap stocks are nore volatile, so GDXJ should tend to have more leverage vs. gold if you buy at the bottom. Here are the approximate percentage drops for the last 5 days... GLD -3.5% GDX -9% GDXJ -11%

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