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Strategies & Market Trends : MARKET INDEX TECHNICAL ANALYSIS - MITA -- Ignore unavailable to you. Want to Upgrade?


To: doniam who wrote (15537)12/12/2002 1:58:43 AM
From: lifeisgood  Respond to of 19219
 
...I looked at the Rydex site and they do track poorly.

We once had a long discussion about this on another thread. If I remember correctly, the decay of the dynamic fund is about 25% per annum under normal volatility (it's volatility that kills you when you use the dynamic fund). Thus, if the NDX starts and ends the year on the exact same number, you will be 25% poorer if you held the dynamic fund throughout that year. It's a REALLY poor choice for anything other than the short term.

best...

LIG