TQQQ in this volatile market is a risky play with so much potential downside right now...but Im sure you can make a good amount of money playing it right.I’m not an expert on TQQQ but have looked at it a few times recently:
I've never used them but they use derivatives to juice up returns and are suppose to track an index. It could be 2x, 3x long or short an index. They're not perfect tracking instruments though and you have to be careful.
Is it just supposed to be a quick trade to take advantage of volatility or do folks actually hold it for a longer period of time?
IMO it's a short term thing not a long term thing, especially the leverage ones where you can get hurt.
The question to ask yourself is are you willing to take a 90% decrease in value and then buy more? While the upside is fun, the downside is not.
I agree with the poster above who said leverage is nice when things are hunky dory but it can really bite you if things turn down, more than you expect so better have a good understanding of it imo.
TQQQ uses derivatives to achieve their 3x leverage. Not sure about FNGU. If/when the market is crashing, the derivates head towards $0 and will be worthless at some point. So, you run out of time to make the $ back. If you just hold the common stock or QQQ, you can hold for ever and not worry about the derivatives within the portfolio expiring worthless. I guess another question to ask yourself is would you buy QQQ on margin? Or, would you buy long term options on QQQ? If the answer is no, then why buy an investment that does it?
All depends on your risk tolerance. If you had bought this 1-2yrs ago you are probably flying high up until events events the past month. No one can predict the markets though and why these SHOUDL be used for short term plays
Daq down 16-17%. S&P 500 down almost 10%. Proshares leverage etfs may be the way to go. :)
I mentioned FNGU before. I will buy it if they can replace the two Chinese companies with MSFT and ADBE.
It has to be with WTF money. However, if you actually hold it long term and don't look at it, it can work very well. Bottom line, the market generally goes up and that will continue. As long as it does, you can make mad returns since that 3x also compounds over time.
But these are ETFs, so I think that stuff is behind the scenes and may not directly impact the investor (at least visibly). The charts seems to track pretty much as expected for TQQQ and UPRO. I don't see any surprises yet.
No.
Shiller PE ratio just before noon today was 35.72. That kind of indicates valuation has a way to go, no? Median is around 16.90.
Yea, but everyone is only concentrating on the Tech stocks, plenty of S& P stocks that have high PE that need to fall. I sold off some stocks ETF I brought yesterday before the market opened to bring stocks allocation down to 30%. This is going to take a lot longer than I want. I knew the answer but don’t like it.
The series was created as inter day trading vehicles and a way to hedge on the short side. I guess you could also use the leverage to not put all your money at risk. You can get similar exposure to the Q's, but only put 1/3 of your money at risk and keep the other 2/3 in cash. But, that is not really their objective.
Yes, most people do not realize this.
Many many folks invest in SP 500 index funds. They've done well. Do they take profits amidst what could be an extended downturn? Or do they sit and watch their profit potentially fizzle?
Mid caps and small caps have PEs lowest since 2011. S&P is higher, but will never get down to that level due to big tech that deserve higher valuations.
Most folks own index funds in 401ks and won't look at them until retirement. The vast, vast, vast majority of investors are passive in every sense of the word.
Please explain. The TQQQ doesn't indicate this:
But large cap indexes particularly the S&P dwarfs its small and mid cap indices in term of $ invested, no?
I strongly disagree with this. Even passive investors will "pay attention" when the markets pull back. People talk. They log in and react.
Go to the ProFunds web page and not M*.Please explain. The TQQQ doesn't indicate this:
TQQQ – Performance – ProShares UltraPro QQQ | Morningstar
TQQQ Performance - Review the performance history of the ProShares UltraPro QQQ to see it's current status, yearly returns, and dividend history.www.morningstar.com
The data in M* are the bottom line results. Of course there can be some day to day variation, which actually means you should hold longer to smooth it out. Obviously, the big risk is just getting crushed on a large downturn, but that is easily mitigate by stop loss orders. Definitely very, very risky, but can be useful after some market weakness.
Strong earnings, double beat!
The sentiment is skewed to the negative. Like I've told you it's not that you beat, it's how much you beat by and how good is the guidance. The slightest hint of something "wrong" and you'll get whacked.
