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You usually don't invest in TQQQ, you typically trade it. Leveraged products are not meant for investing over a long period of time. Sure a few weeks may be fine at a time, but really you don't want to buy near market at all time highs. These are meant more for buying after selloffs and pullbacks.
Leveraged Products are short-term trading instruments. Designed to hedge risk, or double / triple the beta (alpha if active beta funds). Period.
You should not ask people over the Internet in chat-rooms how to invest. Investing comes with liability and compliance. You should hire a Financial Advisor. Any decent FA right now would tell you to diversify well and not put your “eggs” in hyper bubbles. Especially as you are too late to the bull-market.
Your “portfolio” is entirely in hyper-bubbles with leverage on top so you can lose your shirt very quick.
I totally agree. I will also like to add that if you are an aficionado or you can't afford to pay a financial advisor, you should conduct you own research. There are a lot of professionals who give bad advice. Investing is not a exact science. Then regarding the state of the market, I also agree. We are in the midst of a bust.
Please do not invest in TQQQ if you’re a beginner. Just do a quick google search on leveraged ETF’s. You’ll likely be wiped out of that position in a down market and it would take many years if not decades to recover that position.
You never recover due to “contango.” Levered funds cost money in both borrowing cost as well as futures rollover. The contango causes them to erode over longer periods of time. So, even if your levered bet is correct, you still lose money. Often, high beta levered funds remove the contango by reverse-splitting the share price and cutting the NAV.
Also, if you are literally just jumping in this week. Be prepared for some wild swings. The market is still trying to figure out how to react to the rate increases. And a lot of the trendy stocks in tech have taken large losses. It might be a transition to more post pandemic stocks or it could be the beginning of a correction. If you're looking long term consistent investment. It's probably not a big deal and could be a good chance to jump in and get good name stocks on the low. But short term, it can be a wild ride for the next couple of weeks/months.
Chief
Basically it’s a growth tech portfolio with a crypto kicker. There’s really not much diversification of risk factors here. It looks great on a trailing 12-month basis, but we’re at multiple inflection points in terms of vaccinations, economic recovery, fiscal stimulus, interest rates, and inflation.
I’m bullish crypto and have 8-9% exposure to coins and related companies. I’m at about 10% on green energy plays. Probably trimming both categories as they’ve had awesome runs and it’s time to take profits on multi-bag winners. Already did this with the big growth tech names.
I’d encourage you to buy a little of these now but not jump all in given the very real chance of choppiness in the next few weeks. Maybe buy 0.5-1.0% of your capital in each bucket on down days. That gets you exposure without taking on too much risk at a very risk moment.
I’d also recommend spending some time learning about trading and developing a framework. The easy button would be Cramer if you want to be a stock picker. I’m finding Hedgeeye to be killer for an all around portfolio approach. Take the MacroShow free trail and run 20% of you portfolio with their approach. See what you think.
Pro
Why have 3 different large cap us funds w one an ESG
Instead of TQQQ check out UOPIX, 2x Nasdaq 100 and it’s a mutual fund.
GSLC is solid. No ARK?
I’ve only read a few comments and I’m afraid of the responses. You don’t need a financial advisor. If you are just starting out put money in your 401k first and invest in S&P 500. After tax brokerage First 10k in S&P 500 then diversify from there.
Chief
I actually agree with you, there.
OP - here is a good article that summarizes the returns of TQQQ (leveraged) and QQQ (non-leveraged).
TLDR: Generally TQQQ outperforms QQQ on a LT basis, but should you be holding TQQQ through a sharp correction, your investment could virtually be wiped out. So, you have to be particularly important on your entries and exits.
https://www.google.com/amp/s/seekingalpha.com/amp/article/4393839-tqqq-hold-long-not-too-long-data-driven-analysis
And the tax impact could be massive too with wash sales