Replies to post #33508 on Zeev's Turnips Patch-No Politics (ZEEV)

[kevinb]

Fletch,

There's an interesting discussion of just such an idea by Vesselin here http://www.investorshub.com/boards/read_msg.asp?message_id=475773

Notice towards the end, a discussion of the risks of LTBH with these leveraged funds. The drop of Rydex from 600+ to 5 now (which is much higher than the equivalent index drop) seems to bear this out.

Cheers



Kevin

[Mole1]

<RYVYX>.. I like holding a small position (in from the mid-8's). Psychologically, it sort of helps me be underweighted, knowing that I'm going to particpate in some way when the massive rally occurs. There's always that fear of "missing the boat", you know (g). I remember it being 30 something around Naz 2100, which seems within the realm of reason, at least for the moment.

BTW, it often provides daily results closer to 2.5-2.6x the Naz than the expected 2x.