What I Am Buying Today.

[fenders53]

(10-29-2021, 01:50 PM)ken-do-nim Wrote:

(10-29-2021, 01:28 PM)fenders53 Wrote: I just saw DFEN and DRN are both triple leveraged.  If I had short term sector rotation advice I'd leverage up too and retire 10 years ago.  

I know you won't listen but I would limit my leverage to sectors I was very knowledgeable in.  Tech for example.  You'd be less inclined to fold for no reason.  I spent 34 years working for the DOD and I have never leveraged defense.  I doubt you have any business leveraging the sector.  Real estate is bubbly now.  You want to catch the top in a 3x fund before mortgage rates rise?

Actually my plan is to eliminate my DFEN position completely next year, once all the above-water purchases are a year old.

> You want to catch the top in a 3x fund before mortgage rates rise?

Okay, maybe I don't : So you are saying if/when mortgage rates rise, the REITs will all go down in value?

I guess I am saying a few things.  

You should not have had to ask that question AFTER you are leveraged up.  Of course bubbly real estate is at risk from a even a small rise in interest rates.  FED is going to have to tighten things up some soon to control inflation. You know they are buying mortgage backed securities now right.  That would be part of quantitative easing taper.

I think you should invest in anything you want to, and put in the work to understand it.  You are leveraging everything because you are being greedy.  It worked last year right?  

I don't think you will believe until the market has a -10% year and you are down well over double that with leverage and Momo stocks.  Have you ever sold a leveraged ETF when it was up? Or only bailed when it was losing?  The prospectus for all those funds state they are not for long structured for longterm holding.

If you wish start a thread titled Risk Management. I think most have given up but we could probably get them to participate. Sound risk taking and understanding our personal greed and far traits is a extremely important. Better to understand before you lose $200K.