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    • Wed Nov 5th 17:37 PM | Rating: 0 -1
      Commented on:
      New Direxion Triple Leverage Funds: Proceed with Caution
      I think these sound like a great product for short term traders, risk-parity sharpe ratio optimizers, and for black-swan barbell portfolio types.

      Here is an example on how a 300% leveraged product could make your portfolio less risky during the recent/current crash. The 12 year return for a 100% equity portfolio resembling the S&P 500 was about -45%. An equivalent portfolio consisting of 33% BGU and 67% short term bonds would have suffered a loss of maybe 25-30% which is much much better in my opinion.

      In a flat or rising year this leveraged portfolio would return, very roughly, the same as the un-leveraged equity portfolio plus the interest on a whole lot of bonds. Of course the usual caveats apply that the leveraged product may return dramatically more or less than 3x the performance of the underlying index over the medium to long term.
      View article »
    • Wed Nov 5th 17:37 PM | Rating: 0 -1
      Commented on:
      New Direxion Triple Leverage Funds: Proceed with Caution
      I think these sound like a great product for short term traders, risk-parity sharpe ratio optimizers, and for black-swan barbell portfolio types.

      Here is an example on how a 300% leveraged product could make your portfolio less risky during the recent/current crash. The 12 year return for a 100% equity portfolio resembling the S&P 500 was about -45%. An equivalent portfolio consisting of 33% BGU and 67% short term bonds would have suffered a loss of maybe 25-30% which is much much better in my opinion.

      In a flat or rising year this leveraged portfolio would return, very roughly, the same as the un-leveraged equity portfolio plus the interest on a whole lot of bonds. Of course the usual caveats apply that the leveraged product may return dramatically more or less than 3x the performance of the underlying index over the medium to long term.
      View article »
    • Thu Oct 11th 13:39 PM | Rating: 0 0
      Commented on:
      An All-ETF Portfolio With Exposure To Narrow Themes
      Thanks for the articlo, I vote for a new portfolio. If you find this interesting, you could compare how an asset allocation portfolio of the major asset classes would be weighted differently based on modern portfolio theory v. post-modern portfolio theory. Cheers!
      View article »
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