Re: CHECKING OUT BDCL...! - vinanton Stagg
Stagg,
Virtually everything is up 20% this year. VTI is up 19.7%. I would say that most of the 2x ETNs are not compensating you enough for the additional risk. Recency bias of being up 20% this year does not accurately reflect the facts of 6 years of underperformance. The facts with BDCL is that while in a bull market you haven’t given back your money but you also have made significantly less than if you had made another choice. I am just trying to show you and the board some data.
If at your age you already have enough money, what is the rationale for investing in 2xETNs that 1) charge huge fees and 2) on the average underperform the market and 3) leave you much more exposed when a bear market comes? I think these are questions that we can all learn from.
I’ve had my share of underperformers too, most notably AOS. It’s an AMZA kinda loser but I still hold it because I believe in the fundamentals of the business, it’s increasing the dividend and buying back shares.
Vinanton