In plain English. I hear that over time the value of this ETF will decrease simply because of its status as a 3X inverse ETF. This is my first time in an ETF like this or any ETF for that matter and I am having trouble understanding this fully. Can someone please explain. Thank you.
But wait till financials hit new lows. FAZ will surpass the last 115 high. The 50 percent quick decline to about 1.20 area from previous low of 2.32 will make FAZ soar up another 50% to top the gains it will make as we approach old low
That's how it works. Real big move ahead. Show me some red stars!
But you're saying that this works like an option though? I understand that this is not a long term investment. But how is it possible that time can stop this ETF from reaching its former high for example?