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UPRO is only 1/3 of your portfolio, so you have the same exposure as SPY i.e: you are not going to make those crazy returns. The idea is to get cheap borrowing
by smabie 6y ago
UPRO is only 1/3 of your portfolio, so you have the same exposure as SPY i.e: you are not going to make those crazy returns.
The idea is to get cheap borrowing by using a leverage ETF and then buying bonds such that the bond yield > cost of leverage.
- eloff 6y agoYou're arguing against a strawman argument that you invented. I didn't say you would get those crazy returns - merely pointed out that you would have beat the S&P 500 over the last 5 years with the strategy outlined by the parent post. How well it holds up over a time period that also includes bear markets is another question - you can't just look at a bull market and assume it's representative of all time.