Fwd: What Silver's Plunge Teaches Us About Leveraged ETFs

* Sent from my Apple iPhone

Begin forwarded message:

From: "Money and Markets" <eletter@e.moneyandmarkets.com>
Date: 12 May, 2011 4:33:02 AM PDT
To: <computerdiy@yahoo.com>
Subject: What Silver's Plunge Teaches Us About Leveraged ETFs
Reply-To: Do-Not-Reply@e.moneyandmarkets.com

View Our Website [»] Archives [»] Find us on Facebook Follow us on Twitter Thursday, May 12, 2011 YOUR BEST SOURCE FOR THE UNBIASED MARKET COMMENTARY YOU WON'T GET FROM WALL STREET What Silver's Plunge Teaches Us About Leveraged ETFs by Ron Rowland Thursday, May 12, 2011 at 7:30am Before the electronic ink could dry on last week's column, Is the Gold/Silver Ratio at a Tipping Point?, silver crashed. So did ETFs that track this niche in the precious metals market. I hope you avoided all the fireworks. The break in silver gives us a good opportunity to look at how ETFs behave in a fast-moving market. The popularity of leveraged and inverse ETFs means more than a few investors didn't get what they had expected. The Perils of Leverage Leverage is nothing new. Stock traders have been trading "on margin" (with borrowed money) for centuries. The results can be good or bad. Leverage is simply ... [More »] Want to invest in ETFs? Check out the International ETF Trader. The Connection Between Inflation and Income Inequality Claus Vogt explains the connection between inflation and poverty. He points out that the Fed's easy money policies are creating asset bubbles and handing more wealth to speculators in those assets, while reducing the buying power of everyone else. Click here to view [»] Emergency Briefing Online NOW! Wednesday's emergency briefing was a massive success! Tens of thousands of investors joined us online and Martin and his team helped them protect and grow their wealth through this coming crisis. The warnings and investment recommendations we presented at this emergency event are so crucial to your financial success and security, we are leaving the video online for a few more days. There is no cost for viewing it. Just click this link and America's Financial Armageddon will begin playing immediately. Expert opinions may differ. Understanding diverse viewpoints will help your own decision making. How to Use the Weiss Sovereign Debt Ratings by Mike Larson A country's overall financial health impacts a lot more than its government bonds. It can also help determine the flow of money into that nation's stocks and ... [More »] Protect Your Home Equity and Wealth by Mike Larson One of the gravest threats to your wealth stems from the continued housing bust in America. Yes, the real estate environment continues to ... [More »] Energy: Long Hot Summer? by Sean Brodrick Despite U.S. crude oil supplies being higher today than last year, the average cost of gasoline is over a dollar per gallon higher. What's driving prices and what's the outlook for ... [More »] Run Against the Dollar: How Long Will It Last? by Bryan Rich There are many factors working against the dollar and many buoying it. Is China moving closer to a Yuan revaluation? Could the U.S. killing of Bin Laden ... [More »] External Sponsorship Receive your Silver and Gold Investor Kit $99 Value. Free! Top Stock Picks with Free Profit Confidential e-letter! Make Serious Money Trading Stocks for FREE! 2 FREE Weeks of Investor's Business Daily® and investors.com! Free Access: Our Options Strategy Beat the Market By 28% What do you think is driving the drop in the price of silver? VOTE GET RESULTS Welcome to Money and Markets. Another event-filled week. News of Osama bin Laden's demise gave the U.S. an emotional boost and perhaps even hoisted the dollar. Precious metal prices began to pull back leaving everyone wondering: What's driving the change and what's next? On top of that, Washington is still faced with the May 17 deadline for Congress to lift the debt ceiling — the amount the Treasury can borrow. That's just days away! And depending on the Fed's next moves investors will have music of one type or another to face. This is precisely why Weiss Research hosted an urgent briefing on Wednesday — America's Financial Armageddon: Survive and Prosper. At this briefing, the Weiss team answered questions about our new sovereign debt ratings, and what you can do to protect your family and grow your wealth. If you missed the briefing, we invite you to watch it now by clicking here. But please do it right now ... while there's still time. We know you'll be glad you did. As always, if you have a comment, we'd like to hear it. Just Tell Us! P.S. Don't miss excerpts from Martin Weiss's new book: The Ultimate Money Guide for Bubbles, Busts, Recession and Depression.   Sometimes opinions differ. Understanding diverse viewpoints will aide your own decision making. It's 2007/2008 All Over Again Today looks eerily similar to what was going on in 2007 and early 2008. Then as now, macro-economic and stock market indicators issued massive ... [More »] Strongest Sectors and Countries Back in February, I said that income investors should pay attention to health care. That's proven to be dead on as the second best performing sector. And my favorite is in the lead ... [More »] Doomsday Scenario Consider this doomsday scenario: Catastrophic impacts felt by every American. A broad range of government payments stopped, limited or delayed, including ... [More »] A Market Littered with Speculators Widely accepted views may be imperfect, yet they embolden speculators to push markets creating self-fulfilling responses. My advice is to close your eyes, pinch your nose and ... [More »] External Sponsorship Big Pharma's Big Problem ... It's called "The Patent Cliff," and it means their brand-name drugs worth over $142 billion are turning generic in 2011-2016. They need to find new cash cows — fast! No wonder three of the world's largest drugmakers are all ogling one tiny biotech. With a market cap just north of $500 million, it's developed a breakthrough that could soon dominate a $15 billion medical market. At under $7, shares are still cheap, but that won't last. Two major analysts just upgraded this stock to "outperform." Our estimates show an enormous upside for this company — and its shareholders — as word gets out. Full details here. How Safe is Your Money? Check Strongest and Weakest    Auto Insurers    Business Insurers News and Articles Track Bank Failures Get Financial Ratings Visit WeissWatchdog.com for the latest stock and mutual fund ratings. CLICK HERE TO LEARN MORE UNCOMMON WISDOM 6 Stocks To Play The Asian Car Boom by Tony Sagami I don't get it. I'm talking about spending upwards of $100,000 (or more) on a car. Sure, I dreamed about owning a Porsche or Ferrari when I was a young man, but that was when I had no money and even less brains. I will forever be ... [ More » ] YESTERDAY'S CLOSE CLICK FOR UPDATE About Money and Markets For more information and archived issues, visit http://www.moneyandmarkets.com Money and Markets is a free daily investment newsletter published by Weiss Research, Inc. This publication does not provide individual, customized investment or trading advice. All information is based upon data whose accuracy is deemed reliable, but not guaranteed. Performance returns cited are derived from our best estimates, but hypothetical as we do not track actual prices of customer purchases and sales. We cannot guarantee the accuracy of third party advertisements or sponsors, and these ads do not necessarily express the viewpoints of Money and Markets or its editors. For more information, see our Terms and Conditions. View our Privacy Policy. Would you like to unsubscribe from our mailing list? To make sure you don't miss our urgent updates, just follow these simple steps to add Weiss Research to your address book. Attention editors and publishers! Money and Markets teaser content may be republished with a link to the full story on MoneyandMarkets.com. Such republication must include attribution with a link to the MoneyandMarkets home page as follows: "Source: http://www.moneyandmarkets.com" Weiss Research, Inc. | 15430 Endeavour Dr. | Jupiter, FL 33478 | 1-800-291-8545