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Here's a statement of the obvious: The opinions expressed here are those of the participants, not those of the Mutual Fund Observer. We cannot vouch for the accuracy or appropriateness of any of it, though we do encourage civility and good humor.

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  • @Lewis: Has the SEC approved these 4X funds for sale ? I don't believe they have.
    Regards,
    Ted
  • No, not yet. This will be an interesting test case of the new regime.
  • These are the times you want to believe in god and actually wish god to come down and strike down the 4x people. There are so many other things the world needs right now and this ain't it.
  • For once, we all may agree this is a stupid idea. And that didn't require a moderator.
  • Anyone remember Potomac funds? They used to put out leveraged index funds with a multiplier of around 1.25 if I recall correctly. They made a big deal about how a higher multiplier just didn't pay off, between the risk, the cost of the leverage, etc.

    They found that people wanted more sizzle. So they rebranded themselves as DireXion, went to 2.5x, and later upped that to 3x.

    This just looks like the next level.
  • Finally! Something that makes buying a lottery ticket the more sensible option.
  • Like razors with increasing blades, which SNL did a skit on like two decades before it became reality
  • StockTwits is full of posters who plopped money into these high leveraged vehicles and got burned. Some even bought on margin which ended in catastrophe. Kids wanting to get rich quick but end up bankrupt.
  • Considering that an S&P 500 emini futures contract is about 20x leveraged based on the margin requirement...but I hope this fails. Everything that could possibly serve an investor has already been introduced.
  • Can one buy the 4x funds on margin?

    Nick de Peyster
    Undervalued Stocks
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