ProShares Ultra S&P500 (SSO) performance simulator

Levered ETFs are sometimes misused Levered ETFs promise investors a multiple of the DAILY return of some underlying index and are only meant to be held for a day or less. However, there is clear evidence that investors are holding onto some of these ETFs (e.g TBT equity) for far longer than 1 day and thereby making a bet on the path and volatility of the underlying. To understand why this is the case, see our series that explains what drives the returns of an levered ETF if it is held past one day. What this simulator does The simulator helps demonstrate the complexity of these products if held past 1 day and how they can sometimes lead to extreme


Why is gold a currency?

Summary A look at who the major players are in the gold market. We also examine the behavior of central banks over the past 30 years with respect to holding/selling gold for their reserves. We explain why the constituents of gold demand makes it sensible to look at gold as a currency in today’s market. In this video we’re going to talk about the present-day gold market and who the participants in this market are. All the gold that’s never been mined still exists in the world in one form or another so the first thing we’re going to do is we’re going to look at where all the existing the gold in the world is. Transcript The World’s Gold

Why is gold not a commodity?

There is some disagreement over whether gold should be treated as a commodity or a currency. The reason this distinction matters is that if gold is a classic commodity (i.e something that is mostly consumed for the production of other goods/services) it would make sense to analyse the impact of yearly mining production and industrial demand shocks in order to understand the risk of buying/selling gold. On the other hand, if gold is primarily a currency, then it makes sense to analyze its comparative attractiveness as a alternative to paper currency. In this article, we’ll examine why it does not make much sense to look at gold as a commodity. Background By the end of 2010 there were an estimated