A.I.M. Users Bulletin Board

[SFSecurity]

My apologies if this is a duplicate, I don't recall where I got this link, but the discussion of LETFs brought it to mind.

http://leveragedetfs.net/Home.html

Quite a list of 2 and 3x ETFs of a variety of types and sectors.

Which leads to the question I have. Clive said:

I also hold some riskier 'bonds' that yield in excess of 8% that if cash reserves did get down that low I'd rather not sell, so the easier option is simply to switch from using 2x to using a 3x version of the LETF.

I don't understand the logic of switching to a 3x LETF. It would seem to me to accelerate buying in a down cycle because of the increased volatility (or selling in an up cycle) thereby requiring more, not less, cash. What am I missing?

Again, I must say that this is the best forum for exchange of real, solid info that I've ever been on. Clive is a sneaky devil with deep and clever ideas!

Allen