Quote:
Originally Posted by bizaro86
These products are not investments in any traditional sense, they are designed for magnification of very short term moves. If you had a strong sense of what the Fed was going to say and wanted to invest gamble on a short term move they are fine, but they are absolutely inappropriate for a holding period longer than a couple of days.
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I always hear this, and yet in practice, my biggest personal gains have been from holding leveraged ETFs (FAS, TQQQ, ERX, etc.) for months at a time. Obviously there is a higher risk (because when these fall, they fall hard) but if I am confident in the big-picture trend (ie. a recovery from the Covid crash, or Oil prices going below zero) I have no problem buying these for longer periods. I've never done this for inverse ETFs though, as those never seem to work as well.