Is there any reason I shouldn’t expect an average +15% retur...
Is there any reason I shouldn’t expect an average +15% return annually from $SPXL (or similar) over the next 30-40 years?
$Direxion Daily S&P 500 Bull 3X Shares ETF(SPXL.US$
I seriously don’t understand why this isn’t a no brainer stock. Sure, some years are gonna be +170% like this years (due to S&P having a monster 40% year). And then every recession will go down 30-60%. But what other stock wouldn’t…especially as it represents the s&p 500 just 3x.
I seriously don’t understand why this isn’t a no brainer stock. Sure, some years are gonna be +170% like this years (due to S&P having a monster 40% year). And then every recession will go down 30-60%. But what other stock wouldn’t…especially as it represents the s&p 500 just 3x.
But I fully plan on NEVER SELLING and buying probably $1000 every year for the next 30 years and I see zero reason why that investment could average 15% every year.
I’ve been trying to convince myself into getting into Real Estate investing, but this feels safer to me somehow and way less work.
Thoughts?
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akak1344 : It is hard. Because it is 3x leveraged, any loses in future would be triple-negative and may take a long time to recover or break even and thereby you won’t earn much. This stocj is good to hold for short term or hedging.
Mingyao : Think about compounding interest, 10% +10% doesn't equal to 20%, but rather 21%, same calculation apllies to 3x leverage ETFs as well. Vise versa, compounding loss. A 3x Bull ETF can easily drop 70~99% in a bear market, while the index only dropped 30%+, it's hard to recover if u're holding it from the peak