Thoughts on 2x and 3x ETFs

A recent article on WSJ on leveraged etfs was thought provoking, blaming a lot of the markets volatility on these new products. Is it possible that the tail could be wagging the dog? I find it hard to believe and although troublesome, doubtful. People said the same things about the fall of BSC and LEH. While spreading false rumors can be criminal, the truth of the matter is these companies were essentially worthless due to their leveraging of what turned out to be risky assets. This phenomenon seems only apparent with banks and companies that probably should be bankrupt. One would think value investors would step in at some point if this was solely a short selling impact. Lastly, these type of products have been around for years. The new products really only make it accessible to retail…In which case, its probably a sign of the bottom


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