I was thinking of setting aside 10% of my stock portfolio for gambling. Not casino gambling but stock market gambling. Stocks, ETFs, Mutual Funds, and other investments I can buy through Fidelity Investments that have the potential to make me lots of money in a very short time, but also have the potential to drop rapidly in a period of market turmoil.
Here is an example of what I am talking about: TQQQ (TQQQ is a levered fund that delivers 3x exposure only over a one-day holding period of NASDAQ-100 stocks. The underlying index includes 100 of the largest non-financial companies listed on NASDAQ based on market capitalization.)
If I had invested $10,000 in TQQQ ten years ago it would be worth $797,065 today. But it went for a wild ride during the last ten years. Even in an era of a booming stock market, it dropped 49.2% during a market correction. The worst was during last Spring when the COVID crisis scared the stock market. But if I ignored all the ups and downs I would be rich if I sold it today.
During the last 12 months, TQQQ went up 172%.
There are other investments that are similar. What do you think of putting some of your money in a similarly high risk but high potential reward investment?
Submitted July 14, 2021 at 05:14AM by rarelywearamask https://ift.tt/3wIRb0S
