Jack and Cindy...Re: 2X and 3X funds.
These are excellent short-term "trading" vehicles, IMO. Used them in the recent past to make very short-term trading profits of 5% and 10% with a small portion of my money. Recently had several sells with the 3X BGU and TNA funds. In fact, I sold the last of my BGU portions this past Friday for a small profit. Usually don't hold a position more than a few days. Don't have an investment in these critters at this moment, but that could change if the market changes.
Considered AIMing these two funds, however gave up on that idea after doing some research. The prospectuses are clear that these are short-term investments and should not be bought-and-held. Even though AIM generally has more activity than buy-and-hold, it is still a close cousin to buy-and-hold because an investor never sells all their shares with AIM, especially if they are using SAFE as a percentage of the Stock Value and not a percentage of the Portfolio Control.
Personally I am not sure I would get into the inverse funds at the moment. Logically it makes a lot of sense to do it. But, IMO, the market is anything but logical at this moment. For example, the market was all excited this past week about Alcoa beating profit "expectations". Did not hear much being reported about their revenues being down 70% or so. Until companies begin growing their top line revenues I don't have much trust in the market. Don't know if the market is being manipulated or not....it just doesn't make sense to me. As a result, it could go a lot higher from here even though I don't think it should until the revenue picture improves. Would be a little leery of putting money into an inverse fund until the market actually began going down for logical reasons.
Ray
