What killed TBT was that 20% in the middle of the year. It never completely recovered after that. This outlines the decay problem with these leveraged ETF. They make for nice swing trading but are dangerous for long term investment.
Tuesday, January 11, 2011
Another Take on TBT-TLT
Another take on the TBT / TLT relationship. In yesterday's chart I was showing that the relationship between TBT and TLT on a long term basis was a catastrophe waiting to happen. But if we look at relative performance through 2010, it might actually be worse than that! While TLT is basically flat for the year, TBT is down 25%!
What killed TBT was that 20% in the middle of the year. It never completely recovered after that. This outlines the decay problem with these leveraged ETF. They make for nice swing trading but are dangerous for long term investment.
What killed TBT was that 20% in the middle of the year. It never completely recovered after that. This outlines the decay problem with these leveraged ETF. They make for nice swing trading but are dangerous for long term investment.
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