ESRwannabe
Full time employment: Posting here.
- Joined
- Mar 19, 2010
- Messages
- 889
The fact that there are tons of 3x leveraged ETFs available for almost all sectors and indexes is pretty amazing to me.
These are generally thought of as trading tools, but I like to look at them as lottery tickets.
When these ETFs get discussed a lot of people focus on the "decay" built into them. IMHO, I don't care.
Below I have data showing that if you have put $5,000 each into the 3x leveraged NASDAQ 100 and S&P 500, starting in 2011, you'd have $237,688 and $85,347 in just 11 years.
Since both the NASDAQ and S&P 500 are down a good amount, now seems like a good time to buy these two lottery tickets. I'm just going to buy them and hold them in my taxable account and see what happens a decade from now. I have almost $1M in my taxable account. So, $10k is a gamble of roughly 1%.
https://bit.ly/3sEFrgy
FYI, I have started using https://www.sofi.com for my banking and credit cards, as they give better cash back rewards than other banks. The other interesting feature they have is that if you open a brokerage account with them you can have your cash back deposited there and they let you deposit the money directly into these 3x leveraged ETFs...
I think I will make a nice return off of my cash back this way, over the long term.
These are generally thought of as trading tools, but I like to look at them as lottery tickets.
When these ETFs get discussed a lot of people focus on the "decay" built into them. IMHO, I don't care.
Below I have data showing that if you have put $5,000 each into the 3x leveraged NASDAQ 100 and S&P 500, starting in 2011, you'd have $237,688 and $85,347 in just 11 years.
Since both the NASDAQ and S&P 500 are down a good amount, now seems like a good time to buy these two lottery tickets. I'm just going to buy them and hold them in my taxable account and see what happens a decade from now. I have almost $1M in my taxable account. So, $10k is a gamble of roughly 1%.
https://bit.ly/3sEFrgy
FYI, I have started using https://www.sofi.com for my banking and credit cards, as they give better cash back rewards than other banks. The other interesting feature they have is that if you open a brokerage account with them you can have your cash back deposited there and they let you deposit the money directly into these 3x leveraged ETFs...
I think I will make a nice return off of my cash back this way, over the long term.