TQQQ
What is TQQQ? You may be asking that question after reading the title. It’s simply an ETF that is 3x leveraged on the Nasdaq QQQ ETF. The QQQ ETF is already extremely risky, but what TQQQ seeks to do is to provide three times the exposure that QQQ does. QQQ is an ETF based off of the top 100 Nasdaq stocks, companies like Amazon, Tesla, Nvidia, and Apple (https://www.cnbc.com/nasdaq-100/). I have recently purchased some shares of TQQQ, and I think you may want to consider doing the same.
First of all, you should not do this if you’re a buy-and-hold feller. Especially if you are older, have a low-risk tolerance, and/or don’t spend much time messing around with your portfolio. Now, I have not been shy about my optimism. Once The Fed cuts rates again, which will be in January, the economy will rocket away. Now you might be asking, well Henry if the economy will rocket in January, why are you buying now? Because people are scared, and there is an opportunity. While we did just recover from a slight pullback, and therefore the best time to buy would have been a couple of weeks ago, there is still a lot of room to run.
Wherever you turn, whichever article you read, whomever you talk to, they all are pessimistic. You know how in all the books that ever been, they always talk about how if you had bought stocks when they were devalued in ‘08, you’d have a villa in Mallorca right now? Right now is that time, or at least a time that is comparable. Obviously, we’re not in that bad of a spot right now, but proportionally now is one of the best times to buy in the past five years. The ratio of baseless fears to things people should actually be afraid of right now is off the charts. What people are scared of, is other people and their actions. They aren’t scared of fundamentals, values, or government action. All they’re afraid about is investor sentiment. WHY WOULD YOU CARE? Unless you are trading intraday options that could potentially bankrupt you, in which case you should care. What I’m saying is this, if your biggest fear isn’t the company itself or the government, but how some cowards on Wall Street feel a little quakey in their boots, you shouldn’t be trading. When others are scared in such a baseless manner, you have to leap at the opportunity.
Now, this is a little hypocritical, because TQQQ is very much an intra-day affected, and investor sentiment hurt/helped ETF. Wall Street is very quick to change its mind, and I think they will realize their folly. Now, I wouldn’t blame you for waiting for the next pullback, or even a couple of months to pick this up. Even when you do (if you do) it should only make up <5% of your portfolio, max.
“If you no longer go for a gap that exists, you are no longer a racing driver.”-Senna
