4 Replies to “High Risk Portfolio Holdings 11-8-24”
Hi! Why didnt you leverage Gold? There is 2x Gold (UGL).
Hi Jaime
Gold and other commodities don’t tend to do well long term when leveraged. There just isn’t enough long term gain to be had with the leverage to accept that much risk. Check out this link for a chart: https://testfol.io/analysis?s=53MFI2yxWc8 Thanks for the inquiry, appreciate that. Micah
Hi! Me again forgot to mention also TMF 3x Bond to replace EDV?
Hi again Jaime. Pretty much the same story with leveraged bonds as leveraged commodities. Just not enough long term returns to justify that much risk. Additionally, you get a little more interest out of a standard bond fund vs a leveraged bond fund. See chart: https://testfol.io/analysis?s=lMH7TPB1JSS Thanks again, Micah.
Hi! Why didnt you leverage Gold? There is 2x Gold (UGL).
Hi Jaime
Gold and other commodities don’t tend to do well long term when leveraged. There just isn’t enough long term gain to be had with the leverage to accept that much risk. Check out this link for a chart: https://testfol.io/analysis?s=53MFI2yxWc8 Thanks for the inquiry, appreciate that. Micah
Hi! Me again forgot to mention also TMF 3x Bond to replace EDV?
Hi again Jaime. Pretty much the same story with leveraged bonds as leveraged commodities. Just not enough long term returns to justify that much risk. Additionally, you get a little more interest out of a standard bond fund vs a leveraged bond fund. See chart: https://testfol.io/analysis?s=lMH7TPB1JSS Thanks again, Micah.