Hi AIMster,
Putting on Devil's advocate hat here for a minute, if something has already fallen 80% since inception that means either there's only 20% until wipe-out or at some point it will start to revert to the mean and go back up to some degree.
Not necessarily, I can't remember which fund it was but during the 2000 bear I know at least one of these funds did a 10 to 1 reverse stock split. In order to get the price back up.
These funds remind me of going up to Oklahoma to play blackjack on the Indian casino. When you sit down at the table they have the normal bet area and what they call a ante area. The minimum bet is five dollars, and the ante is 50 cents. They say if you are a good blackjack player the odds are about 2% against you, if you are bad it could be as high as 20% against you. With that ante the odds become 12% and 30% against you. With those odds you start losing money in a hurry! In order to get those odds back down you have to have a minimum bet of $25 or $50 dollars a hand.
Come see me at Systematic Investing group #board-966 lets talk formula plans.
