11-04-2021, 10:21 PM
(11-04-2021, 10:01 PM)fenders53 Wrote: That sounds good but nobody here believes you could endure a 90% drawdown that lasts a long time. We have that opinion because you constantly stress about stocks that dip 10% in the short term, and many times think of reason to dump them.
Do you know how many funds have been liquidated during bear markets? I don't know either but it's a substantial number. Leveraged funds can and do just go away. Sometime when I am bored I'll find some examples.
That's true. Hopefully COF will be a good learning experience for me.
I'm much more confident in my triples. I remember the day earlier this year when SOXL fell to $28 and divmenow was saying it would fall to single digits. I didn't even think of bailing. And the reason I was confident was that the only news item was rising inflation. I read the news very carefully that period and I didn't buy the correlation that rising inflation would sink tech stocks. Hopefully, when the next major market crash comes and I read a news item like "Bear Stearns closes down" or "Factories in Wuhan shut due to super-virus" I'll go to cash right away.