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Strategies & Market Trends : Value Investing -- Ignore unavailable to you. Want to Upgrade?

To: Area51 who wrote (42909)	6/3/2011 2:04:26 PM
From: MCsweet	Read Replies (2) \| Respond to of 78516

The huge yield on BDCL is tempting, but I am not positive on a double leveraged BDC etf. BDCs are volatile enough as it is and with double leveraged etfs, volatility is not your friend. Leveraged etfs buy high and sell low in order to properly maintain their leverage, so over time they tend to only work out if something goes straight in your direction (or your holding period is so short that the buy high/sell low factor doesn't have time to kick in). Maybe the dividend will help. It gives you some positive carry. The other leveraged etfs didn't yield much to my knowledge. I myself would still be inclined to stay away. Best of luck, MC