5 ms·

If you're willing to take on a large risk, just buy some TQQQ or UPRO. These are leveraged ETFs for the NASDAQ 100 and S&P 500 respectively.

by unmole 5y ago

zz865 5y ago
If you work in tech and have RSUs this is very terrible advice.
ddorian43 5y ago
Yes, I do the same. Or you can do HFEA. Note to OP: 5 years is very short. Change it to 20 years.
- rybosworld 5y ago
  HFEA is probably the only correct way to use these leveraged ETF's. Buying and holding them is extremely likely to underperform.
- thomasfl 5y ago
  OP here: in 20 years I will be 74 years old. I might be dead by then. Even if I workout and continue to do lots of pull ups every day. My four kids would be happy though.
  - ddorian43 5y ago
    The point is to slowly move your funds to less volatile methods. You don't have to be 100% stocks for 5 years and then go 100% bonds after 5 years.
    - thomasfl 5y ago
      Good point!
anonu 5y ago
Really bad advice. Risk has a time-dimension. If you want to invest in triple leveraged funds, do so on a very short time-scale. ie a few days. On a longer time-frame, months, years, these funds trend towards zero. There are a lot of articles and whitepapers on the math behind leveraged funds. I would recommend reading them before investing. These are not "investments" btw. These are tactical trading tools.
- infecto 5y ago
  You are not completely wrong but you can definitely use this over the long-term when in a composition of funds. https://www.bogleheads.org/forum/viewtopic.php?t=288192 https://www.bogleheads.org/forum/viewtopic.php?t=288192
- unmole 5y ago
  > On a longer time-frame, months, years, these funds trend towards zero. Over the past 10 years, TQQQ is up ~150x and UPRO ~50x.
  - anonu 5y ago
    The great thing about a 10-year lookback today is that you dont include the 6-sd move that was the 2008 GFC.
  - spaetzleesser 5y ago
    The last decade has seen a massive effort to prop up all asset classes including stocks at any cost. This can't go on forever and won't. I have seen the 2000 .COM crash and the 2008 crash and at the moment it feels the same as when it was leading up to the crashes. There are plenty of people whose only experience is always rising markets so they think this will keep going on (it will until it doesn't). Same could be said for tech workers. I think a lot of them will have a rude awakening in the next few years when they realize that their great jobs were not because of their own brilliance but because they were lucky to ride a huge bubble.

If you're willing to take on a large risk, just buy some TQQQ or UPRO. These are leveraged ETFs for the NASDAQ 100 and S&P 500 respectively.

by unmole 5y ago

If you're willing to take on a large risk, just buy some TQQQ or UPRO. These are leveraged ETFs for the NASDAQ 100 and S&P 500 respectively.

zz865 5y ago

If you work in tech and have RSUs this is very terrible advice.

ddorian43 5y ago

Yes, I do the same. Or you can do HFEA. Note to OP: 5 years is very short. Change it to 20 years.

rybosworld 5y ago
HFEA is probably the only correct way to use these leveraged ETF's. Buying and holding them is extremely likely to underperform.
thomasfl 5y ago
OP here: in 20 years I will be 74 years old. I might be dead by then. Even if I workout and continue to do lots of pull ups every day. My four kids would be happy though.
- ddorian43 5y ago
  The point is to slowly move your funds to less volatile methods. You don't have to be 100% stocks for 5 years and then go 100% bonds after 5 years.
  - thomasfl 5y ago
    Good point!

anonu 5y ago

Really bad advice. Risk has a time-dimension. If you want to invest in triple leveraged funds, do so on a very short time-scale. ie a few days. On a longer time-frame, months, years, these funds trend towards zero. There are a lot of articles and whitepapers on the math behind leveraged funds. I would recommend reading them before investing. These are not "investments" btw. These are tactical trading tools.

infecto 5y ago
You are not completely wrong but you can definitely use this over the long-term when in a composition of funds. https://www.bogleheads.org/forum/viewtopic.php?t=288192 https://www.bogleheads.org/forum/viewtopic.php?t=288192
unmole 5y ago
> On a longer time-frame, months, years, these funds trend towards zero. Over the past 10 years, TQQQ is up ~150x and UPRO ~50x.
- anonu 5y ago
  The great thing about a 10-year lookback today is that you dont include the 6-sd move that was the 2008 GFC.
- spaetzleesser 5y ago
  The last decade has seen a massive effort to prop up all asset classes including stocks at any cost. This can't go on forever and won't. I have seen the 2000 .COM crash and the 2008 crash and at the moment it feels the same as when it was leading up to the crashes. There are plenty of people whose only experience is always rising markets so they think this will keep going on (it will until it doesn't). Same could be said for tech workers. I think a lot of them will have a rude awakening in the next few years when they realize that their great jobs were not because of their own brilliance but because they were lucky to ride a huge bubble.