Quote:
Originally Posted by Tron_fdc
I've been reading some pretty interesting things on ETF's the last few days......and came across a pretty interesting article on shorting them.
http://ca.us.biz.yahoo.com/etfguide/...3_id.html?.v=1
It makes a pretty strong case that we're not out of the woods yet, and likely in for another correction.
I talked to a broker the other day who said "anything that falls out a window will likely bounce a few times" which made me chuckle. |
Its an interesting article, but I would be careful. When you're shorting you can basically have an infinite loss, but not an infinite gain. The ETF's that give you the 2x down or up eliminate some of that risk, but there is a price that you pay for that as well. Basically the more volatile things get the worse the returns look, whether you bought the up or the down.