recovery 09 .... four good reasons why, page-18

KenG

I have started to nibble at the Geared Aussie share fund.

I feel I am early and am doing so on some long term indicators I use.

Because it is 2:1 geared, I questioned them about what would happen to any fall of 50% from buying point.

The initial reply was "no, you can't get wiped out", but further questioning was not so convincing.

That doesn't fill me with any sense of confidence, and those who bought at the top must have little equity left.

Whether individual holdings can go to zero after a 50% fall seems likely to me but worth asking about from someone who knows.