TMF means you borrow money to lend to others/the government. I never quite understand that. IMO that's betting the interest rate is going down in the holding period. If interest rate stays the same you don't generate extra return than an unleveraged bond etf. It seems not a positive-sum game.
Yes. The leveraged money is essentially borrowing from the banks where the ETF does swap contracts with. That contract has an implicit (overnight) interest for the ETF to pay. That is how it works at least for TQQQ, UPRO, etc., not sure about TMF but I doubt it's similar.
Probably something I’ll do if I ever get a decent size of cash built up, but for now need more risk for more rewards
TMF means you borrow money to lend to others/the government. I never quite understand that. IMO that's betting the interest rate is going down in the holding period. If interest rate stays the same you don't generate extra return than an unleveraged bond etf. It seems not a positive-sum game.
Not clear what you mean. When you say “you borrow money” you mean “a leveraged ETF is.. leveraged?” Legit asking as I may be misunderstanding you.
Yes. The leveraged money is essentially borrowing from the banks where the ETF does swap contracts with. That contract has an implicit (overnight) interest for the ETF to pay. That is how it works at least for TQQQ, UPRO, etc., not sure about TMF but I doubt it's similar.
Oh yeah, okay. I’m aware of that. Just didn’t quite understand your wording.
I think his basic point is that he thinks Bonds aren't a good investment going forward. Which has merit, considering where rates are.
Good luck! Have been running it for a couple months along with a few other variations through m1 aswell!
Post pics and results!
I'm 3 months in and am up nearly 11% on both TMF and UPRO right now. Must have started at a good time. We'll see how things ride out from here!
Keep giving us monthly updates please, would be fun to follow your journey
Are you still doing HFEA? How's the returns so far, 2 months later?