I'm very bullish on tech, to the degree that I don't mind owning 100% QQQ long term in my retirement. However, I would lose sleep over a large TQQQ position.
When doing a 75/25 QQQ/TMF split, it looks like TMF is removing risk and increasing gains both. Increased sharpe, sortino, less market correlation, less max drawdown, less standard deviation. It just makes it better. Or, at least has the past 10 years.
But is my thinking wrong? Since TMF is 3x leveraged, is it actually adding more risk than I'm considering? TMF does not seem nearly as dangerous to me as TQQQ.
And if TMF only does well in times of falling yields, and yields are low and I'm not expecting them to go back up long term, is the mix of QQQ/TMF expected to be not as synergistic as they've been the past ten years?
Thanks!
Submitted September 28, 2020 at 09:49PM by Forteana137 https://ift.tt/3cGJ5xC
