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Strategies & Market Trends : The Epic American Credit and Bond Bubble Laboratory

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To: clochard who wrote (109824)	5/10/2011 8:02:02 PM
From: silvertoad	Read Replies (1) of 110194

good point -- i should have said 'more reliable' instead of 'safer'. and the most reliable means to leverage a position would be with margin - either the 50% margin available in the stock world, or the extreme ~5% in futures trading. but, to be sure, greater leverage equals greater risk... still, the leverage 'works' very cleanly in these cases, just as intended, and can be useful for sophisticated investors able to manage risk with position size and stops. the problem with the 2 and 3X etfs is that they generally don't work properly over long periods; so, useful for short term traders but best left alone by most imo... they're a rather strange hybrid.

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