http://www.elitetrader.com/vb/showthread.php?s=&threadid=157818&perpage=6&pagenumber=4 I happen to agree 100% with what btud is saying here. Whether I'm wrong or right is moot. What I wanna do is buy some commodity ETF's to implement this outlook... for the long haul. So far, all I've come up with is: DAG (2x) DYY (2x) UCD (2x) I've read all I can about leveraged ETF erosion over time, but it came across to me as only on the short side. Of course I could be completely mistaken... hence the post. This is for the LONG term. Comments appreciated.
I would never advise anyone to get into a leverged ETF for the long term. If you want to get in long term go with DRYS or FCX. If you are looking for a short term, long commodities play, go with the ERX
Thanks Rex. So going long a levered ETF will have the same type of erosion as going short, correct? Makes sense. I coulda swore I read something of the long side not being affected though... anyway, that's why I was asking.