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"The Financial Industry Regulatory Authority and the Securities and Exchange Commission decided to issue an investor Alert yesterday called “Leveraged and Inverse ETFs: Specialized Products with Extra Risks for Buy-and-Hold Investors”…. This warning was meant to warn retail investors of the added risks in leveraged ETF investments that exist above and beyond the traditional world of investment products." (USA Today)
Where were the SEC and the Finra last year when these leveraged ETFs were losing investors hundreds of billions of dollars? We reported ad-nauseum about these ETFs here.
Mr. Madoff was peanuts compared to the losses mom & pop investors suffered with leveraged ETFs, instruments of mass financial destruction.
Reminder that we have a live loss-o-meter for FAS/FAZ, on a 20-min delay.
1 comment:
None of them make any claim to being suitable for mom and pop to hold. They are for active investors who understand and accept the costs and risks.
Unfortunately, ignorance isn't against the law (or congress would be empty). People will still look at the charts and say "I gotta have that" without understanding how to use them and protect themselves from massive financial damage.
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