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I am currently investing in TQQQ. My plan is to keep it for the long term. I have read that long term investing in leveraged ETFs is bad. Is that true? If it is I do not understand why since the stock market long term trend is up.

Note: I understand that dividends from TQQQ are not qualified and therefore I am doing it in my Roth IRA.

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  • Please cite an example of such writing. Their "why" could be a point of agreement or disagreement.
    – Pete B.
    Commented Oct 19, 2023 at 20:05
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    Take this example: QQQ is down 9% from its high in Nov 2021, while TQQQ is down 57% over the same time. The problem is that large downward movements can be catastrophic for a leveraged fund.
    – D Stanley
    Commented Oct 19, 2023 at 20:11
  • It's basically a bet, and just as with roulette - statistically you have a very high chance to eventually win if betting indefinitely. But can you afford all the losses until then?
    – littleadv
    Commented Oct 19, 2023 at 20:23

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