What happens with Ultra ETF's (leveraged) like sso, ddm, uyg? Once the market gets halved they should be at 0 This ETF situation leads me to believe the market will at least be cut in half, because of this shorting opportunity. Just an observation that just occurred to me.
They follow the inverse DAILY performance x 2 to the market. The Dow could keep losing 10% everyday and its UltraLong constituent would lose approximately 20% everyday. Keeps on going and going. Doesn't track the index directly over long-term, but the DAILY performance. Same with the UltraShort ETFs.
for every long etf there is a short equivalent - for the dow there is the SIJ - UltraShort Industrials ProShares, and so on. There is no need to short anything....
Thanks for the clarification, I was questioning the efficiency of the leveraged etf's and now I see that they do work efficiently.