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You're absolutely right, they have a limited lifespan. Take what you can, but don't get greedy. This is one case where pigs will definately get slaughtered.

Right, which is why I recommended using the actual returns of the actual downtrend that occurred from 1/6 through 3/6 and apply them starting with today's closing price. Repeat the block of returns, and you're up where I said after 115 days. And, again, it ain't happening because reality...

I already posted the method, the duration and the end values. If that's not enough for you then you're beyond hope.

Melissa Lee's voice is like fingernails on a chaulkboard, IMHO... The show dies in 6 months with her at the helm.

Hey sparky, try replicating the actual returns that the FAZ and the index experienced in the past and replicate them forward. FTR, replicating the daily returns from 1/6 through 3/6 forward starting with today's closing prices would net an index of 96.44 and a FAZ of 325 after 115 trading...

I didn't say "back to," I said "back above." As in, well above...

No, the underlying has to reset higher. The R1KFS was around 800 when the FAZ started trading. It dropped to around 700 while the FAZ went over 200. For a similar run over 200 to happen again, the R1KFS will have to first get back up over 800.

It's simply impossible for any leveraged inverse ETF to trade above it's previous high when the underlying instruments they depend on have not reset to levels well above where it was when the inverse ETF began it's previous run. In other words, as the underlying continue to generally trend...

How's this; so long as the index trades below 700 FAZ will never see 200 again.

You're all bile and no brains. Ain't no way, no how, never going to see 380 during this down leg again.

Stop reading pop fiction and start enjoying reality during your relatively short time on this ball of mud.

Not possible. All trading in financials would stop long before the index came close to zero. That being the case, how about you show us that you're more than just bile-laden talk by actually showing us that you know the math and you can apply it to prove me wrong? C'mon sparky, show us...

How is that possible? The FAZ is based on swaps of the Russell 1000 Financial Services index. If you plot the index and FAZ on top of one another you can see the bottom in the index made on 1/20/09 was near the 11/21/08 bottom while the equivalent high in the FAZ was about 50% of the...

The CISSP cert certainly has a lot of mindshare, which is sad because the GIAC certs are more effective, IMHO. The former tests your ability to recite InfoSec knowledge while the later tests your ability to apply it.

Funnier is that ever since Man could slap two syllables together he's been predicting the End of the World(tm). Talk about the ultimate buy & hold...

This kind of thinking goes to the very heart of the problem -- equivalent capital gains rates for different levels of leverage. IMHO, there should be zero cap gains tax if you're playing with only your money and not using leverage. But, the idea that you should be able to keep the same...

Did you think that one up all by yourself, or did you need help?

Hogwash. Monetary inflation lifts all prices. Uh, this crisis was never about the over inflated assets themselves. This was all brought on because of the multiple layers of grossly over leveraged debt instruments that were created on top of those assets. Once the subprime end of the...

You're correct so long as the dollar maintains or increases in value. But, I don't think that's going to be the case 3-5 years out. In the time leading up to that we're going to see further declines in house prices and income over many sectors. Just the same, I think that current home...

Would that be using the original CPI computation, the modified one, or some future one?