/biz/ - Business & Finance

>>20280510
Leveraged ETFs are great till they arent and you get crushed.
2000 would have destroyed a TQQQ. You wouldnt even break even today if you bought in 1999.
>>20280551
It tracks 20 years bonds and multiplies by 3.
Bond prices went up over the years because yields went down. Essentially bonds with 2% yield become more valuable than those with 1%.
If the bond yields increase the bond prices decrease as people will get the new 3% bonds from the gov and your 2% bonds are worth less.
(Simplified)

That said I dont see bonds having much gas left in the tank. You can go negative a bit because banks are required to store money somewhere and politics and rules yadda yadda buy US treasury bonds or, in Europe, German bonds as a kind of savings account for banks.
But right now we are at -.5% and such.
You cant go lower. And that means you cant make the bond prices go up (much) more.