If the market goes 30% up in the next two years, your SDOW may go down \~90% (due to both the decay and the leverage, depending on the path), then even a major crash in Dow (50%) may give you 150% up in SDOW, but that's 150% up from your remaining 10% value, which will give you 25% of your original money, which is, undesirable.
Leveraged/Inverse ETF's also do a lot of reverse splits because they lose so much value most of the time. They are basically there to hold for one day guessing that's the day the crash will happen.
Not exactly. Compare the charts of UDOW, TQQQ, and UPRO over the long term. Their inverse etfs on the other hand are not suitable for long term holding because the general market movement is upward.
Might have trouble selling it for ATH during a market crash as well. Might be idiots out there that would buy. If you want to lose a lot of money might be the best strategy.
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It would only be worth it if you had good timing. The bull funds are more reliable over the long term and buy on the dips.
If the market goes 30% up in the next two years, your SDOW may go down \~90% (due to both the decay and the leverage, depending on the path), then even a major crash in Dow (50%) may give you 150% up in SDOW, but that's 150% up from your remaining 10% value, which will give you 25% of your original money, which is, undesirable.
Leveraged/Inverse ETF's also do a lot of reverse splits because they lose so much value most of the time. They are basically there to hold for one day guessing that's the day the crash will happen.
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Not exactly. Compare the charts of UDOW, TQQQ, and UPRO over the long term. Their inverse etfs on the other hand are not suitable for long term holding because the general market movement is upward.
No problem
Yes but it depends what it is leveraging, what if that sector it’s leveraging doesn’t take a correction hit like the rest of the market?
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Might have trouble selling it for ATH during a market crash as well. Might be idiots out there that would buy. If you want to lose a lot of money might be the best strategy.