Comments by "Magic Beans" (@Magic_beans_) on "3x Leveraged ETFs : What They DON'T Want You To Know" video.

  1. I agree with your overall thesis, over a really long timeline volatility can be a very good thing. However, at 5:00 you’re misrepresenting the argument critics make. Critics aren’t saying leveraged ETFs always underperform. They’re saying leveraged ETFs can tank hard, which most retail investors don’t have the stomach for, and they underperform_in choppy markets_ . Compare QQQ to TQQQ during a sideways market or a drop and recovery and you’ll see what they mean. For example from Jan 4, 2021 (first trading day and the year and yes, also basically the peak of post-plague recovery) to today (Dec 7, 2023) QQQ is up 24% while TQQQ is only up 1%. The 3x fund dropped harder and needed longer to recover. Will it be awesome over 5-10 years, probably. But it’s a huge loser for your average investor who chases yield and panic-sells at the bottom.
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