Posted by lae2 on July 29, 2009 at 11:39:57:
View a one-year chart comparing FAS to BAC and JPM. This is all that is needed to see that either the anti-leveraged ETF crowd is stupid or that they have an agenda. Further, add Lehman Bros, Bear Stearns, and Wachovia to the comparisons. FAS does not look so villainous in this context. Regardless of the underlying instruments, leveraged ETFs are safer than blue chip stocks at this time. I suspect that the anti-ETF agenda belies this. Leveraged ETFs and, in particular, leveraged inverse ETFs level the playing field and make the market less risky the retailer whether they hold or day trade. Someone with an agenda wants to put retailers in their place; disadvantaged.