Since 08, SPXL (an sp500 3x ETF) has seen a 500% increase in value.
The sp500 has seen only 70%.
Where the fuck are the "you don't hold leveraged ETFs long term" people?
What am I missing here?
Thanks, I guess that answer was sufficient.
Though in the next bull market after a real crash comes be it one month or 3 years from now, I'll have half a mind to put a portion of my investment money into something like SPXL.
1. they operate on a goal of 3x their basis fund PER DAY
2. they don't always get exactly 3x(sometimes higher, sometimes lower)
3. when it drops you might get fucked by how much you lose
The law of supply and demand usually follows the NAV of a leveraged ETF. If people don't give a fuck they can agree on SPXL's price to keep rising even though the underlying assets are bleeding money.