OK, the headline is a bit sensational but the article cited below proves to me that investing as we know it is over. Remember, I blogged that stock trading jumped the shark a few months ago when football coach Jimmy Johnson was pushing a trading system. http://quicktakespro.blogspot.com/2009/08/stocks-have-jumped-shark.html. Now I know the world has ended because of this article about the launch of 100x leveraged ETFs on the Nasdaq. http://www.etfexpress.com/2009/11/17/kelly-capital-launches-100x-leveraged-etfs
Of course, it was not a real article but a bit of satire. http://www.istockanalyst.com/article/viewarticle/articleid/3646069. Author Jason Kelly points out that the trend towards leverage is still with us and I say it means we have not learned our lesson.
Kelly goes on to report about the mail he got over the piece, as follows:
“A full 65% of people expressed an interest in owning products that would “go bankrupt within the course of most trading days.” A stunning 5% thought they already owned them. Only 30% of respondents got the humor.”
PT Barnum was right. There really is a sucker born every minute. Lord help capitalism.
