Loading ...Reading between the lines of the statement, seems to me that it is 20 % rule that is the problem and that is not going away…plus mathmatically the only way u can get 3 times gearing, is to buy 3 times the amount of the underlying shares, unless u have an agreement, that dealers will sell u a 3 times paper derivative exposure and they then delta hedge…ie hardly ever buy the full 3 times amount.
I have yet to see what Directions book looks like behind JNUG….could be v interesting to see just wht it has…certainly buying it’s own fund GDX seems v naughty, especially as I showed last week, it is trading at a premium to most of it’s underlying shares…even when there is a constant massive seller.
Hopefully this is the beginning of the end of PM ETF’s….the scum are certainly playing games with them and their demise will not help the scum one iota.
One other thing is for sure, huge amounts of money have gone into the shares, via ETF’s and surprise, surprise it hasn’t gone into the actual shares, which it should have done, if Fall st was even vaguely honest…or the SEC not glued top the latest Debbie Does, we’d be way north of 220 in the HUI by now.