I am not an expert in the stock market by any means! This is my complete speculation.
Let's say I'm going to purposefully wait until the next bear market happens. It's World War III or some crazy big tech bubble that causes a recession in 2018 or 2019.
We wait a year or year and a half (like early 2008 was the beginning and mid 2009 was when the recession ended). Historically, the charts show that the S&P should be profitable for the next few years.
Cons to putting money in SPXL at that time:
• You don't know for sure how long a bull market is going to last • The losses are 3x harder • More nervousness as it may be tempting to sell it earlier • Stop loss could instantly sell things for way less and immediately lose big chunk of portfolio
Pros to putting money in SPXL at that time:
• Most likely the bull will be alive for at least a year or a few • Gains are 3x bigger and more profitable • Stop loss could instantly sell things before they dip down harder (or before another recession or depression happens)
Is this a plausible plan? What are your thoughts? Could this work in practice?
TL;DR I want to invest in SPXL rather than a standard S&P index to increase my gains during a bull market, and am wondering why it would or would not be plausible.
Edit: formatting
Submitted December 12, 2017 at 09:40AM by candihap1 http://ift.tt/2AhvlVG
