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Re: jlmjih post# 1188

Friday, 09/19/2008 10:22:19 AM

Friday, September 19, 2008 10:22:19 AM

Post# of 1453
Hi Jimjih

>>>>why would these be riskier?
dont they follow the russell 2000<<<

They are riskier in the same way mortgage derivatives are riskier than if a bank originated and held its own mortgages.

They move twice as fast ..... burning through your cash on the downside.

In the short term they follow the index but not over longer periods of time due to a number of reasons I can not explain but including higher fees , the fact that if something goes down 50% it has to go up 100% to get back to even.

Don't even think of using one fund to AIM and one as the CASH! BIG BIG mistake!

I suggest a more diversified portfolio of large value, small value, forien, REIT, Bond using ETFs

Toofuzzy

Take the road less traveled. It will make all the difference.

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