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The longer L is held, the more it declines 😪

Why does L depreciate (lose weight) when held for a long time
Good morning 😃It is a continuation of.
Before that, L40 compared to the current N900, from my point of view,
I think it has returned to the position I had anticipated before.
The SOXL 3x ETF does not result in a 3x final return.
Stock prices rise and fall because they move 3 times in response to daily price movements
In the case of repetition, the more you hold it across days, the more it starts with the target index
They will continue to diverge.
Assuming that I explain it with target stock X and a 2x ETF...
X is 100, and if you calculate a 2x ETF with 100 👇
If X on the 1st day is 100 and the gain/fall rate is +25%, then 125; the 2x ETF is +50% and 150.
If X on day 2 is a gain/fall rate of -20%, it becomes 100, but the 2x ETF is -40% and 90.
Thus, on day 2, X will be 100, and the 2x ETF will be 90.
So if you think about it simply, it's possible to have L40 whether N is 890 or 920.
This kind of misalignment occurs, so I'm posting my predictions after correcting the misalignment
This is why leveraged ETFs are not suitable for long-term holding
Other than that, it can be compared to the S&P 500, SOX, etc.
This is an assumption, and the calculation for the entire target index
It's impossible with stupid freak Pinhane
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