Despite contango/decay, I am now going to hold my inverses from now through at least end of January, I am in 20k worth of UVXY TZA SQQQ SCO KOLD VXX SOXS SRTY SARK etc. because I think a major correction is imminent. I will martingale in once they have gone up 10% or more. Goal is to be in 200k worth if there's a major drop, by Jan 31st.
Should be interesting to see if Ken will stick to this plan or it's just more grandstanding with a short shelf life.
The QQQ like SPY is a momo strategy. You always have a chunk of the 100 highest value stocks on NASDAQ. Even if in the stocks held today crash they get replaced by whatever is hot. If you play the triple or 5X all you have to do is stand the wild ride. But you never know. History tells us that nothing is for sure. Japanese stock bubble wasn't really that long ago.
%% 5x also would be real good if goal was to be ''drawdown king''\LOL BUT like SCHW says of QLD, TQQQ, UPRO...........................................................''NOT suitable for all investors'', AND I like TQQQ sometimes ; but it pays no dividend like qqq
There's a study out there somewhere that shows if you had bought $10,000 worth of TQQQ and SQQQ at their IPO; Today the TQQQ is worth over 1 million and SQQQ is worth about 6 bucks.
Yeah, it's weird how compounding works. The TQQQ doesn't triple the QQQ in terms of compounded annual returns (53.34% vs. 21.03% from inception to the end of Nov. 2021). A lot of critics mention this. But $10,000 invested in the TQQQ would compound to $1,063,773 vs. $80,304 for the QQQ. That's an ending balance that's more than 12X bigger.
%% LOL; inverse SQQQ buy is short profit+ short term trades. Regardless of start date/IPO, i would not want to hold TQQQ thru a 3 year bear/LOL
%% 2000-2001-2002. Crazy year /SPY has outperformed , mostly QQQ ytd............................................................
I should have remembered that. The Tech Wreck was the main reason I changed from an investor to a speculator. Yeah, I've got SPY up 22.5% YTD. I can live with that. I figure anything over 20% a year is OK. It's the target I aim for.