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jamie asked in Business & FinanceInvesting · 9 months ago

Isn't the ETF, "SSO" living proof that leveraged ETFs can be bought and held long-term?

SSO (2X leverage SPY) began in 2006 (before the 2008 crash).....

from tis inception in 2006 to present, SSO outperformed SPY by a significant margin.

(not by double, but still outperformed).

so if it could withstand the infamous crash of 2008 and still come out ahead...

it can probably withstand almost any kind of conditions. yes?

1 Answer

  • 9 months ago

    Certainly a leveraged ETF an be bought and held long term.

    I would not say the 2008 crash followed by a ten year bull market proves anything. A lengthy bear market or a market crash is not always followed by raging bull market.

    For the first decade or so after I started investing the market largely moved sideways. that could happen again anytime in the future.

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