Is this a satire? The shorts are making money hand over foot shorting TVIX. I am one of them.
How many longs bought TVIX a month or months before this last market correction and then never sold at the peak and are still losing money? Probably most of them.
I am a little investor and I am not losing, I keep making money every day. If you lose money it is on you and no one else because you can easily do what I do. The difference is when I see which side of the trade makes money that is the side I get on.
It is not true that not every one can short. There are two ways. For non IRAs you can have a margin account and short all you want. Second, there are ETFs that will short for you and you can buy them long in an IRA account. Buying SVXY in a IRA account is the same as shorting TVIX in a margin account. I have said this at least 20 times in the past but you guys are so closed minded you don't listen. It seems you guys are preprogrammed to lose money.
But listen. I appreciate your willingness to buy this stock and lose money because otherwise I would not have shares to borrow. It just makes me feel better if I warn you off first. At least that way I know I didn't con you. You did it fully informed.
I make more money buying SVXY than shorting TVIX because of the amount of money I have in IRAs. I moved most of my non IRA money into real estate investments at the bottom of the real estate crash and am waiting for a good time to sell. I would love to short more than I do but my money is tied up. So I buy ETFs that short for me.
or what was the point of buying in the first place?
My point being is that this stock peaks for such a short amount of time that few people realize that they are at it and keep holding. That is why the short side is easier. Because you can be off when you cover by one month and still make a lot of money, unlike the long who must time it to within a day.
You can imagine that this is what you will do but who actually ever does that?
Stimulating the economy via the fed only gives you more of the same. So if you were becoming a bar bell economy then you will become more of a bar bell economy. That is not what the Democrats say they want. To even out the economy we need to bring back middle class jobs from China by altering our trade policies but that isn't what Democrats are trying to do. You can believe what you want but I really don't see how you came to your conclusions because I don't see the Democrats actually doing anything to accomplish what they say they want. So I don't get why you think they are helping anyone.
Keep in mind that if any of the longs here were in the habit of researching anything that they believe to be true then they would not be buying this stock to begin with. So you have to assume they are just saying what they hope will be true with really no basis for why.
Every year this stock goes down to $2 and then they do a 10 to 1 reverse split after which it is $20 so it never goes below $1 and thus never gets delisted.
Until they send a fully equipped division over who is out for bear I don't think that anyone really cares from an investment perspective.
It has been an excellent few days. Longs are all out a few days ago with their profits I assume and shorts are riding down the other side of this peak making profits as we go. It is all good.
You longs sold already didn't you? You know that the VIX rarely rebounds, right? If it does it is only on the way up and only after a single down day which would be a dead cat bounce for the rest of the market.
TVIX loses value so quickly that in my mind this makes it a lousy hedge. In my opinion there is never a reason to buy it long. For one it is at its peak usually for less than a day so few people ever sell it at the best time. Then they imagine it will go back up, which it rarely ever does, and they ride it back down again. That is why the longs that post here never last very long. They try their hand at it thinking they will be one of the lucky ones and then poof, never to be heard from again. Only the shorts stick around. And that is because we make money every time. I have never lost a dime shorting this stock. Not once. So if the shorts are always making money then it only follows that the longs are losing it because they both can't be making money.
The growth in US oil idue to shale s out pacing the decline in Saudi oil. So don't worry about it. And besides, the amount of oil that the US uses is on the decline because it is getting used more efficiently.
Also, they have been predicting that Saudi oil was going to run out for a long time and fields that should have run dry by now are still pumping a lot of oil. These claims are over stated. It is not as bad as many have feared.
World oil reserves keep increasing because they keep finding more. Granted it is harder to get but that is only a matter of money. If you pay enough for it then they will go get it.
The US is currently the country drilling most of the shale oil but it exist all over the world. Wait until everyone else starts drilling their shale as well.
Mexico decided to quit going it alone and is asking for outside help to explore its oil reserves. They should start pumping more oil in the futrure as a result once the newer technology gets in there and starts making things happen again. But I am sure these oil companies will cut much better deals after what happened the last time they invested in Mexico and then Mexico nationalized. I have to believe they will make sure they get it all in the beginning rather than seeing it as a long term investment which relies on trust which clearly they no longer have.
Before then the stock will reverse split from about $2 to about $20. Why would they delist a $20 stock?
People only assume it is fraud because they haven't made even the bare minimum of effort to understand the ETN. The issuer has made all the necessary disclosures. The problem is when an investor simply assumes that because the ETN exist that it must be a good investment and if not then it is fraud. That is not the definition of fraud. Fraud is when the issuer has misrepresented the risk and they have not. The only people who have not understood the risk did not read the material that has been made available to anyone willing to make the effort to read it. That doesn't make the issuer fraudulent. It makes the uninformed investor who feels like they have been defrauded lazy because they thought it was too much effort to read a document. It seems as if they expect that there should be an investment fairy that guides them kindly to make only good investments. However Tinkerbelle doesn't exist. This is the adult world that we live in and adults are expected to make responsible and informed decisions and not just go out and buy a stock based bare minimum of effort.
When I read many of the post on this message board it allows me to better understand why there are poor people in the world. It is basically boils down to mental laziness. Of course nothing can be done about a low IQ but then how does a person with a low IQ get money to invest? Government workers maybe?