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Strategies & Market Trends : Dividend investing for retirement

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To: CusterInvestor who wrote (3480)	1/25/2010 4:25:51 PM
From: JimisJim	Read Replies (1) of 34328

Yes, couldn't agree more... the 2X and 3X long and short ETFs all say they try to match 2X or 3X THE DAILY MOVE OF THE UNDERLYING INDEX LESS FEES AND EXPENSES... in effect they reset every day and the longer you hold them, the more of you money "leaks" out of them via fees and expenses even if you got the direction/trend right... use them only for very short swing trades at most (a few days, not weeks) and most are used to simply daytrade. This has been discussed and dissected on many investment boards. However the straight ETFs (vs. the 2X or 3X long or short ones) might... might.... be effective IT hedges, but again, watch out for fees and expenses -- and more importantly, what are they trading to match the underlying index? Actual stock, etc., or exotic paper instruments? Some do one or the other and some do both, so read the fine print first and you'll be much happier in the long run using them to hedge short or long. Jim

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