October 14, 2020
The use of leveraged funds is an integral part of many investors preferred style of investing. I do agree that stern warnings should be administered to potential buyers of such funds and with examples. For an example, if a market crashes 10% suddenly, you will lose 30% of your investment. If you should fail to sell on that day, you are quite likely to lose another 30% of your investment in the second day. Accordingly, buyers should be recommended to only expose a relatively small portion of their investments to leverage and it should be strongly recommended that these funds should not be purchased by investment beginners with less than a year of investing experience or limited ability to absorb losses.