Not supposed to be sexy too by the thread request, it's supposed to be safe. Is it safe to take an easy 30% yr while risking everything? TQQQ would have not recovered or survived the dot com bubble crash. Also, in a leveraged etf, isn't everything priced in, including options? I like those etf's charts but I don't understand what is safe or convenient about them.
I get the reason people are spooked about a 3x ETF, some are stupidly bad to play with, such as the reverse market variety and TQQQ is not for everyone. However, there is nothing in the market today that offers better option premiums and a higher ten year return on the stock than TQQQ has enjoyed.
Well again, something that we know would have gone to zero and been shut down in a market we've actually seen in the last 25 years is not something "safe" by any definition of that word in common usage. That doesn't mean it's not something you and I can trade successfully, but it does mean it's not a good suggestion to the OP and not a good fit for this topic.
Just saying it would go to zero is silly and baseless. If it was around in 2000, it would have followed the Nasdaq QQQ , so before spouting facts, look at how QQQ traded during the bubble. It peaked around $110 in March 2000 and fell to $80 in April, then rebound to $100 by August (lower high). From August trended down with plenty of time to rethink the validity of the sector . The thread isn't about what to hold FOREVER and let it ride. The suggestion holds well with selling ITM CC's on a week by week run on a current sector that is out performing the market by a wide margin. I was trading during the dot.com bubble and remember the wild daily swings. Trading tech was very much like trading bitcoin now, and at that time I didn't trade tech, even though I owned a few computer repair shops.
Decent article: Stats on rolling S&P 500 stock market returns: https://www.thebalance.com/rolling-index-returns-4061795
You're right, I engaged in some hyperbole. It only would have gone down 99.9% and you'd still be down significantly today. It's important to understand that these 3X funds return 3X the PERCENTAGE DAILY RETURN of the index. That means that you can't just take the QQQ level on one day and compare it to the level on any other day except the next day, multiply it by 3, and that's what TQQQ would have returned. Doesn't work that way...at all. Am I the only one who thinks it's important to actually have at least a basic grasp of the fundamental aspect of how a financial instrument works before trading it? I feel like I'm in some alternate word definition universe when the above represents "safe"!
I feel like a wounded soldier listening to a new recruit explaining me how to dodge bullets and jump over mines. Pointless.
And there`s no need to answer even. 1% monthly is nothing and it isn`t worth it. Doesn`t even mention the inflation which will eat out this 1%.
You grizzled old veteran you, we all stand in awe of your vast, world weary experience. Since it's "pointless" to impart your great wisdom to us, one wonders why you're taking the time to make the post? Do you actually have anything to contribute to the conversation, or are you above that?
I don’t know of a way to “safely” generate 12% above treasury yield. If I had, I would keep it a secret as it would be close to the holy grail assuming I could scale it. I am thinking that it would resemble something like what LTCM did quite successfully until they got too big. But I don’t think I have seen you suggest anything practical either. Do you have one?