Strategies & Market Trends : Dividend investing for retirement


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To: Triffin who wrote (11395)3/30/2012 9:45:00 AM
From: Bread Upon The Water of 15822
 
Thanks for the info.

IMHO most people don't care about the math involved in the ETN. They just know most that of the time it goes up when the market goes down (if past performance is indicative) and that is enough for them and that is why they have become so popular.

What IS unknown, I think, is how well they will work now that they have become so popular. In other words will their popularity affect their ability to track volatility? I don't think anyone knows the answer to this yet.

But investors will continue to use them, I believe, until proven that they don't work because they want a safety net of some sort and are not sophisticated enough to run the other type of hedges (options etc) and these offer the appearance of a simple fix to the safety net problem.
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