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A little corner of the universe of ETFs could help you triple your earnings this year.
However, the high volatility degrades the returns generated by leveraged ETFs.
"If you are 5 [percent]Down 5, you're not at zero like in Apple, IBM, etc. ", said Jablonski. You are down 2.25 because of this same cumulative balance. "
Volatility in gold mines has hurt bulls and bears in space, she said. Both the NUGT Gold 3x ETF and the DUST 3X Gold ETF have generated negative returns since 2011.
For the investor to tactical and active management, a leveraged position could work in a portfolio, said Jablonski. The trick is to know when to use them.
"A good example is profits, so Boeing has crushed its income, you brought in AMD to crush your income," she said. "If you are convinced that the semiconductor index will be trending upwards and that volatility will be low over the next few days, you can choose a 3x position, keep an eye on it and generate a little alpha in them. short term, unload your position. "
She added, "Your view of the markets and volatility is essential."
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