Quote from empee:
You realize, of course that this will smoke the market in bull markets and get crushed in bear right? (Its almost like a "new" nasdaq-17 index lol). Actually, kudos for putting together a modernized version of QQQQ. (Since QQQQ + nas100 are heavily weighted towards biggest stocks, like s&p)
The key will be what your sellpoint/reenter point is, or if you "buy and hold" during the high beta drawdowns (or scale in). THAT will show that you are the stock_trad3r u claim to be.
Quote from stock_trad3r:
Yes, if there is a bear the index will get hit, but so will every other index. During the subprime selloff in August the index held up well and now it has beaten the market by 40%. So I'm sure it could easily weather another large selloff.
Quote from empee:
Right now, you are benefiting from multiple expansion + Growth (two ways of growth); the exact opposite happens in bear markets. However, your thesis as we evolve to a new civilization is there are no more bear markets, so theoretically it won't happen again.
However, if you are wrong, the index gets hit both ways, multiple contraction + negative/flat growth. (Thats why these stocks get hit so hard and why they perform so well during bull cycles).