It just is not worth it for me to try to find in advance the rare stock that will beat the 3X leveraged NASDAQ 100 ETF, TQQQ.
Fewer then 5% of the stocks in the DOW, SPY, QQQ and IBD50 list from 7/4 beat the performance of just holding the TQQQ since the GMI Buy Signal on July 1 (+25.8%). Even the more conservative QLD (2X leveraged) does better. How many times must I repeat this analysis before I change my approach. The best strategy is for me to wade into TQQQ after a GMI Buy Signal. Trying to find the rare stock that will beat the TQQQ is a fool’s errand, just to satisfy one’s ego. The goal is to have the best chance of making money, not to hit the very rare lottery.
The GMI remains on a Buy Signal at 5 (of 6).
Hi Dr. Wish,
What are your thoughts on percentage of portfolio to invest in the TQQQ? I have tried to come up with an answer, but I have not. My concern is a black swan type event.
In the last 2-3 years, what is the track record of using GMI signals and TQQQ?
Wow… thanks for having the humility to compare the TQQQ with your screened stocks! I like the idea. Very simple and would save time!
Greg– If you were in the market with mutual funds, etf’s or individual stocks the same thing would happen with a black swan event.