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Originally Posted by Hog's Gone Fishin
I looked up SDOW out of curiosity. I don't get it ??? It's objective is to lose money and according to it's history it's done that quite well. average return of -37% last 10 years.
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It’s a 3x leveraged ETF designed for trading, not investing. You buy when the DOW is high because it’s an inverse. Meaning when the DOW goes lower, you make money. It’s used for intra day trading by many or swing trading over a few weeks. Last time the Dow was right over 25, you could have bought SDOW at 16.50. Later than week when the Dow plunged a bit below 24, you could have sold SDOW around $19. Nice 15% profit on a market downturn. It’s a short term hedge. Again, it’s all speculation related and pretty risky.
The reason it’s lost so much money is because it does the opposite of the market and since we’ve had a historic run, it’s obviously gone down in value.