I don’t think anyone thinks that these ETFs are nothing but short-term plays, even their prospectus tells you that.
Most ProShares ETFs Target Daily Returns — Each Short or Ultra ProShares ETF seeks a return that is either 300%, 200%,
-100%, -200% or -300% of the return of an index or other benchmark (target) for a single day. Due to the compounding of daily returns, ProShares' returns over periods other than one day will likely differ in amount and possibly direction from the target return for the same period. Investors should monitor their ProShares holdings consistent with their strategies, as frequently as daily. For more on correlation, leverage and other risks, please read the prospectus.
IMO, anyone would be foolish to not consider the high potential for a near term bout of inflation to hit this market…..stock markets down go straight up hill without corrections. “IF” the job numbers tomorrow come in showing a major drop in the unemployment numbers, watch out! Granted, as of late some of the short ETFs haven’t been a good place, however, even with the market roaring ahead, they haven't dropped in the same percentage.
IMO, not having some bond inflation hedges like VIPSX are missing out……VIPSX has given me a near 5% capital gain, plus thrown off about 2% in dividends…………………a 7% gain and the great potential that inflation is coming………I’ll take it in NEW York minute.
I will continue to advocate………dividends are nice, but loss of capital ain’t no fun at the end of the day. |
