Want to pick HC brains about holding LNAS(geared NDQ) long term, as opposed to just a trading vehicle. Like many, I am a believer in the long term success of the Nasdaq. Chart shows what the last ten years looks like, but DYOR. Historically the stocks in Nasdaq are well selected and have shown over time that this is the case. E.g. avoidance of financials and miners. So...... if this is the chart of the Nasdaqunleveragedwhat would the chart look like if it was leveraged at 2.6 times (LNAS roughly). I realize that losses are multiplied the same as gains but if one takes a long term position on the index and assumes 12%p.a. growth over the next ten years, what are the specific dangers/risks of utilizing LNAS as a long term hold rather than the Nasdaq itself, thus significantly maximising the annual return. Have had people say it is "too risky" without providing specifics. Rebalancing only occurs quarterly so not a significant fund impost.
