If I'm confident about the bullish trend of markets in the S&P 500 or Nasdaq-100, why shouldn't I invest in a 2-3x leveraged equivalent long term?
I've heard most of the arguments, the main one is volatility drag. Basically if it falls 50% you will need a 100% gain to break even.
But looking at their long term or since inception data, they still massively outperform their indexes. UPRO outperforms SPY by 6x since inception and TQQQ is almost 20x.
They still outperform the index despite the volatility drag and all the other setbacks. And Nasdaq nowadays have tiered circuit breakers where trading will be halted of it declined 20% a day. So an index dropping by 33%, and therefore tanking the whole fund is impossible, in Nasdaq.
So despite it having some crazy losses of say 80%, somehow it still claws back and wins over the long term. The data don't lie. So why not just hold it for the long term if you can control your emotions and not panic sell?
Submitted August 19, 2024 at 02:58AM by DrummerFantasti https://ift.tt/hRA7jeP
