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Wednesday, 09/14/2011 12:58:26 PM

Wednesday, September 14, 2011 12:58:26 PM

Post# of 94785
Bets on VIX won't pay off longterm:

Article: "Bets on the Fear Index Scary for Most Investors"

http://www.smartmoney.com/invest/strategies/bets-on-the-fear-index-scary-for-most-investors-1315936692449/?link=mktw

"Because of how the funds are designed, it is also difficult to make LONG-TERM gains betting on fears of volatility. Consider that the VIX was recently at 43, up from 27 a year ago. Yet over the same period, an investor who bought and held the iPath ETN would have lost 55%. That is because if volatility rises or even stays flat, the underlying options contracts get more expensive"

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