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Don't Get Caught by the "Creeping Terror"

When baseball fans recall the National League pennant race of 1951, most remember the so-called "Shot Heard 'Round the World" - the walk-off homer that New York Giants slugger Bobby "The Flying Scot" Thomson hit off fire-balling Brooklyn Dodgers reliever Ralph Branca.

Giants' fans often remember the affair as "The Miracle of Coogan's Bluff" - a reference to the location of the Polo Grounds, the broken-down, U-shaped park that their team called home.

But Brooklyn Dodgers players and fans remember their team's pennant-race disaster by a wholly different name.

They called it the "Creeping Terror."

It's a great story.

And it's also a warning that today's investors need to heed.

Let's start with the story.

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  1. 000063494587 | August 12, 2013

    According to by John John Gabriel with Morningstar in a 6/12/2013 article titled "This tactical trading tool has no place in the portfolios of buy-and-hold investors, " Gabriel asserts that "iPath S&P 500 Short-Term Futures ETN VXX to be an attractive short-term risk mitigation tool. While volatility displays a strong negative correlation to the equity market–volatility spikes when markets fall–buy-and-hold investors should not view this product as a long-term portfolio diversifier. This ETN is designed for use as a tactical trading tool, with prospective holding periods to be measured in days, not weeks."
    Polar opposite opinions! Whose right? And more importanly why?

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