Leverage

Bubbles are a wondrous affair, and, according to the aficionados, easy to spot from afar.

The Financial Industry Regulatory Authority (Finra) has released further guidance to clarify its position on investing in leveraged and inverse ETFs.

Direxion Funds has released two Direxion Daily Shares 3x ETFs, comprising leveraged bull and bear funds tracking the MSCI US Reit index.

ETF Securities has released a range of double leveraged and double short funds on the Amsterdam platform of NYSE Euronext.

There is real, albeit currently low, risk of systemic meltdown which could spread across financial markets because of leveraged position, research into hedge funds by credit ratings agency Standard & Poors' suggests.