Close X Cookies are necessary for the proper functioning of 24hGold.com. By continuing your navigation on our website, you are accepting the use of cookies.
To learn more about cookies ...
EnglishFrench
Gold & Silver Prices in

How to Lose 50% in a Day on ETFs: Trade of the Century

IMG Auteur
Published : May 20th, 2017
408 words - Reading time : 1 - 1 minutes
( 0 vote, 0/5 )
Print article
  Article Comments Comment this article Rating All Articles  
0
Send
0
comment
Our Newsletter...
Category : Opinions and Analysis

With options and futures, you can go broke and then some in minutes.

Thanks now to leveraged ETFs you can produce some amazing results in a day.

Pension Partners reports How to Lose 40% in a Day.

Losing 40% or more in a day was always possible using futures and options, but before June 2006 it was nearly impossible to do so using an exchange-traded fund (ETF). What happened in June 2006? The first leveraged ETFs were introduced.

Fast forward to yesterday and we witnessed the largest one-day decline in history for an ETF: -48.3%. The 3x long Brazil ETF (BRZU) now holds this ignominious distinction.

Thanks to leveraged ETFs, the 1987 crash has become child’s play. For a number of these ETFs, a 20% decline has become a non-event. The 3x long Gold Miners ETF (NUGT), for instance, has had 15 days in which it has declined 20% or more since its inception in late 2010. Its counterpart, the 3x short Gold Miners (DUST) bests this with 16 days with declines of at least 20%.

Before this week, the 3x short Financials ETF (FAZ) had held the record for largest one-day loss, at 45.1% (on March 23, 2009). The record stood for over 8 years. But records, as they say, are made to be broken.

Who will be the first to lose 50% in a single day? The casino is open – place your bets.

One person commented they did not understand the point of my post How High Will Bitcoin Go?

It would have helped if I included the Twitter poll I meant to insert.

Bitcoin Nears $1900. How high do you expect it to go?
https://t.co/lk6KSIq1Pp

— Mike Mish Shedlock (@MishGEA) May 19, 2017

Trade of the Century

I was curious where people thought it was headed. So far, 67% think it will more than double from here. Not many readily buyable things go from well well under a penny to $1900.

As late as June 2012, you could have gotten Bitcoin for $7. I didn’t.

Blockchain Technology

For the record, blockchain technology will become widespread. It is perfect for recording things. Mortgages, deeds, titles, etc, are a perfect fit for starters.

Bitcoin itself is widely used as a capital light mechanism out of China. Outside of that, it is a mostly a speculative plaything.

Why not a triple-leveraged Bitcoin ETF? Perhaps Bitcoin could then eventually take out the above ETF records.

Mike “Mish” Shedlock

Source : mishtalk.com
Data and Statistics for these countries : Brazil | China | Georgia | All
Gold and Silver Prices for these countries : Brazil | China | Georgia | All
<< Previous article
Rate : Average note :0 (0 vote)
>> Next article
IMG Auteur
Mish 13 abonnés
Mike Shedlock / Mish is a registered investment advisor representative for SitkaPacific Capital Management. He writes a global economics blog which has commentary 5-7 times a week. He also writes for the Daily Reckoning, Whiskey & Gunpowder, and has over 80 magazine and book cover credits. Visit http://www.sitkapacific.com
WebsiteSubscribe to his services
Comments closed
Latest comment posted for this article
Be the first to comment
Add your comment
Top articles
Latest Comments
Debt, Dollars, DOW, War, Silver, and Shirts
20 AugRAHU12
Right here on this web site you could locate the most successful as well as the very best device on the net for Roblox Robux hacks. If you favor va...
Deep Subprime Auto Loan Delinquencies Reach 2007 Levels: The Next B...
22 AugThe Recusant
MIsh: Great article and headsup on what's happening in the subprime loan and bond sector. The possibility of a crash due to the auto loans...
War Games: China Say It Will Prevent US From Attacking North Korea ...
20 Augkevthorne2
Done nothing? How about: "There was a pre-emptive attempt from Koreans to reunite their country in 1950 after resisting American occupation...
War Games: China Say It Will Prevent US From Attacking North Korea ...
18 AugRckpyle1-2
Tough talk from China. Ask yourself, would China be willing to see Beijing become a crater if it attacked the US to aid NK? No, tough talk is cheap...
NY Fed President Wants Consumers to Tap Home Equity: Didn’t We Try ...
17 Augmikejuha
As a prudent investor, I eliminated all mortgage debt in January 2009. When I paid off my loan with Bank of America, they initially refused to tak...
Total Eclipse
19 AugThe Recusant-2
"I’d like to hear [sic] an argument..." Historical statues typically honor or remember people of greatness, the beneficial contribution th...
Can a government surplus cause the economy to tank?
18 Auggfs543
Your dissection is incisive, Steve. You weren't refuting just this one writer. You were beating up on popular Keynesian fallacies.
Can a government surplus cause the economy to tank?
17 AugDRGEORGE
Thank you very much for that Steve. But please just don't 'leave it there'. The author of that article apparently intends to expand on that bullshi...
Most commented articlesFavoritesMore...
World PM Newsflow
ALL
GOLD
SILVER
PGM & DIAMONDS
OIL & GAS
OTHER METALS