Investment in FAZ... Need Expert Advice!!

[winsome007]

Hi Guys,

FAZ (Direxion Financial Bear 3X Shar (FAZ) is an inverse ETF which goes 3X times up as the market goes down.
Now FAZ is trading @ around $ 20. I am planning to invest $10K now hoping the FAZ will go up to $2000 dollars in the next 3yrs.
Basically I personally believe that DOW will go down and touch the 2008 low of 8000 pts in the next 3 years. If that is the case will i achieve my target of 2000 in FAZ? (FAZ was around 3000 during the 2008 stock market crash)
What are the risk? what is your advice? Please share your experience.

Regards,
Winsome.

 

[winsome007]

interesting info to check out...

FAZ: ETF Inflow Alert - Forbes

Hi Guys,

FAZ (Direxion Financial Bear 3X Shar (FAZ) is an inverse ETF which goes 3X times up as the market goes down.
Now FAZ is trading @ around $ 20. I am planning to invest $10K now hoping the FAZ will go up to $2000 dollars in the next 3yrs.
Basically I personally believe that DOW will go down and touch the 2008 low of 8000 pts in the next 3 years. If that is the case will i achieve my target of 2000 in FAZ? (FAZ was around 3000 during the 2008 stock market crash)
What are the risk? what is your advice? Please share your experience.

Regards,
Winsome.

 

[winsome007]

Experts please share your thoughts!!

 

[Hobster]

Have a search on zerohedge.com for information on FAZ and the associated risks.

 

[Roonbox]

Hi Guys,

FAZ (Direxion Financial Bear 3X Shar (FAZ) is an inverse ETF which goes 3X times up as the market goes down.
Now FAZ is trading @ around $ 20. I am planning to invest $10K now hoping the FAZ will go up to $2000 dollars in the next 3yrs.
Basically I personally believe that DOW will go down and touch the 2008 low of 8000 pts in the next 3 years. If that is the case will i achieve my target of 2000 in FAZ? (FAZ was around 3000 during the 2008 stock market crash)
What are the risk? what is your advice? Please share your experience.

Regards,
Winsome.

Where did you get the info that FAZ was at 3000 in '08?

FAZ was reverse split by 10 in '09.

Liam

 

[xlfblogger]

You can't "invest" in FAZ its an ETF used for short-term trading. There is depreciation involved when in the FAZ. Just because the DOW falls to its lows of 2008 does not mean FAZ will return to its highs of 2008, it'll actually be well short of its 2008 highs due to depreciation.