The Dangers of VXX

[Benton D Struckcheon]

I'll write something longer and more involved on this subject, but I figure first an Executive Summary, as it were, would be a quick way of depicting the point.
VXX is an ETN (not an ETF, it's a different sort of thing) that attempts to replicate the short term movements of VIX futures, the futures - and the options on them - being the only way you can attempt to trade the VIX.

Chart number one: VXX since the beginning



Chart number two: VXX over the last two years



Chart number three: VXX over the last year



I hope you get the picture.
I'll start another thread to explain options and futures and how this ETN works, but I want this to stand alone, because in real life I keep running into people who put money in this fund thinking "It's too low, it has to go up."
I hope the above establishes that no, it doesn't have to go up.