Quote:
Originally Posted by bolo00911@hotmail.com
I believe you have UYG confused with SKF.
UYG is bullish when the Banks do well.
SKF does well when the banks do bad. This is the inverse you are talking about.
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Oh I'm sorry, I assumed and made a mistake.
Well, IMO, financials have just gone through a huge bubble(Soros calls it a 20+year superbubble) and it'll take time to deflate. In the long run, the financial industry will remain a formidable sector of the economy.
However, UYG is essentially taking a leveraged position on financials. Suppose financials stop falling but start going nowhere for the next 5 years. The fund could seriously deplete itself by trying to create a situation where it doubles the performance of financial stocks.