What would a good ETF/fund be to balance TQQQ?

[wmwmw]

Yes,50%TQQQ/50%GLD is what I am looking for.
If there is no 90% drop, TQQQ will make more.
If there is a 90% drop, the Gold injection will make more.

 

[Saltynuts]

But wmwmw, when you say:

If there is no 90% drop, TQQQ will make more.

Don't you mean that leaving your $$$ in GLD will make more, since you are only switching your GLD money to TQQQ if there has been a 90%+ drop?

 

[DiceAreCast]

That's why you should not invest in those leveraged ETFs. Plain and simple simple. They work only for short term trading.

It is not only a drawdown thing.
If a serious bear market happens TQQQ could significantly underperform QQQ in the long run. That 's why you need to hold some fund to prevent this event from impacting your portfolio.

https://www.elitetrader.com/et/threads/tqqq-vs-qqq-22-years-simulation.356593/

 

[ph1l]

inverse relationship with TQQQ to the greatest extent possible.

Here's one with a negative correlation to TQQQ.
https://www.portfoliovisualizer.com/asset-correlations

 

[DiceAreCast]

So, as I said. Same old story. Pikers without money want to sit at the big league table. Guess what inevitably happens each and every single time...

Because you can get a much higher % return with much smaller investment. And given the HUGE logarithmic returns over time you can start even smaller and let it compound up. So you can have just a very small amount invested in TQQQ over the long haul and still come out the same as if you have put all your money in QQQ. Like all you need is less than 10% of your money in TQQQ to come out ahead in the very long haul. You don't want to put ALL your money in TQQQ, because it can go to basically zero. But a small amount, letting it compound, and couple that with an investment in something else with all that cash you have freed up, sounds like success to me, especially if you can find something that goes up over time but, when TQQQ goes down violently, also tend to track up to offset your small position in TQQQ going down. Gold or something based on it is an obvious candidate.

 

[wmwmw]

That's why you should not invest in those leveraged ETFs. Plain and simple simple. They work only for short term trading.

Did you read my other posts?
I guess you only read one of my posts. That is why you think TQQQ is not a good long term investment. Plain and simple.

 

[DiceAreCast]

None of the leveraged instruments are. It does not matter what you write or think about them. Even the fund sponsors warn of this.

Did you read my other posts?
I guess you only read one of my posts. That is why you think TQQQ is not a good long term investment. Plain and simple.

 

[wmwmw]

Here's one with a negative correlation to TQQQ.
https://www.portfoliovisualizer.com/asset-correlations
View attachment 259469

If you want to hold VXX for long term you need to learn a word: contango.
If you hold VXX more than 5 years you lose like 90% of its value due to contango.

 

[wmwmw]

But wmwmw, when you say:

If there is no 90% drop, TQQQ will make more.

Don't you mean that leaving your $$$ in GLD will make more, since you are only switching your GLD money to TQQQ if there has been a 90%+ drop?

If you hold all TQQQ from the inception,and there is no 90% drop, you make like 100 times.(the number may not be accurate.)
If you hold 50% TQQQ, 50% GLD from the inception,and there is no 90% drop, you make like 50 times.(the number may not be accurate.)
If you hold 50% TQQQ, 50% GLD from the inception and there is 90% drop in the first year, you inject GLD in the first year, you make like 280 times.(the number may not be accurate.)

 

[Saltynuts]

So, as I said. Same old story. Pikers without money want to sit at the big league table. Guess what inevitably happens each and every single time...

LOL, wat? I'm very confident I have far more money than you lol. That's not the point. This is very simple to comprehend. We are trying to come up with a portfolio that will beat the market, pure and simple. Using a leveraged product allows you to free up money you'd otherwise have tied up in a similar but non-leveraged product. So the question is can you use that freed up money in a way to make your portfolio overall better off than if you had put 100% in the non-leveraged product.