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Strategies & Market Trends : Dividend investing for retirement -- Ignore unavailable to you. Want to Upgrade?

To: JimisJim who wrote (3964)	3/1/2010 9:09:01 PM
From: Elroy	Read Replies (1) \| Respond to of 34328

Yes, IMO, and after much discussion on other boards, I've concluded that inverse ETFs (and many others) simply are not good for LT investments -- there appears to be too many ways for money to "leak" out of them and it always comes down to the language concerning matching the performance of the underlying index/securities/whatever as they tend to buy/sell derivatives and such to mimic directional movement and many of them essentially "reset" every day and then buy/sell more the following day to try to mimic the direction/performance of the underlying... etc. rinse, repeat every day... I've concluded that these are ONLY appropriate for very short term trades and/or day trading and that the longer one holds them, the less return to expect... indeed the more one can expect to lose if they are the 2X and 3X ETFs. If this is true, then shouldn't it be fairly easy to make money by shorting these "leaking" ETFs?