Message Font: Serif | Sans-Serif
 
UnThreaded | Threaded | Whole Thread (2) | Ignore Thread Prev Thread | Next Thread
Author: shannonatlanta Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 3  
Subject: Ultra Dow 30 Proshares Advice Date: 11/1/2007 8:48 PM
Post New | Post Reply | Reply Later | Create Poll . Report this Post | Recommend it!
Recommendations: 0
I have read a few things recently on Ultra Dow 30 Proshares that is making me lean towards making this the backbone of my IRA (20-25 year to retirement) and was wondering if anyone has some insight that i may have overlooked.

I keep reading that it is set up through leverage to double the DOW whe n the DOW is up, and to lose double when the DOW is down.

Even though this is riskier than a DJIA mutual fund, isn't the risk pretty negligable since I am 20-25 years from retirement?

If anyone can steer me to more research that may help I would appreciate it.

My goal is to put about $3,000 EVERY January into the Ultra 30 -or, the same amount into a Rule Maker company (PG, AIG, NIKE, YUM, American Express)- and then the rest of the year choose a stock from the Stock Advisor every two months, making sure I spread out the Stock Advisor picks across diverse industries that appeal to me: environment, healthcare, natural resources, technology, and metals.

Does this approach sound solid? I am new at this but would like to earn about 17% return per year over the next 20-25 years.

Any ideas, criticisms, etc?????

Foolin,

Shannon "the Cannon"

"Go Dawgs!!!!"
Print the post Back To Top
Author: jluhman One star, 50 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 3 of 3
Subject: Re: Ultra Dow 30 Proshares Advice Date: 11/29/2007 9:39 PM
Post New | Post Reply | Reply Later | Create Poll . Report this Post | Recommend it!
Recommendations: 0
I've just started to look into DDM myself, and it appears that DDM may be best suited for short-term investments.

Here are a couple of links I found discussing the Ultra Shares strategy:

http://www.fool.com/investing/mutual-funds/2006/11/16/the-best-etf-for-2007-proshares-ultra-dow30.aspx

http://www.fool.com/investing/mutual-funds/2006/11/16/the-best-etf-for-2007-proshares-ultra-sampp-500.aspx

The prospecus for the ultra shares warn that over the long-term, it will be difficult for them to mirror 200% of the return for the underlying index, and that in flat or down markets, they will almost certainly underperform the index.

Best of luck to you, and let me know if you find out any more information.

Disclosure: Short-term long DDM

Print the post Back To Top
UnThreaded | Threaded | Whole Thread (2) | Ignore Thread Prev Thread | Next Thread
Advertisement