Staying the Course - 3X the Pain

My $92,922 investment in 3X* ETFs is down 31.091% to $64,032.

Am I disappointed? No.

If you saw my earlier post, Prep for 2022, you already know why and how I made this year-end investment. More to the point, that post laid out my potential max losses BEFORE I made the investment. 

Revisiting the post, I guess-timated** that:

my "extreme" three month loss would be -25%; 
my one year "extreme" loss would be -53%; and
my "extreme" 3 year loss would be 89%. 

Yet, I still made the investment. 

So far, after two months, with inflation and a war, my investment is very close to my 3 month measure.

The year is not over (and neither is inflation or the war) and these losses are all made with the knowledge of the long term history of a bull market (through all prior inflations and wars) and the guess that Bogle's refrain "Stay the Course" means history will repeat and these will all recover eventually.

But I am a special case. I may never sell this and my kids may inherit this account. 

*Oddly enough, the 3X ETFs, SPXL and TQQQ have nearly exactly matched their advertised returns of 3X the SPY and QQQ, respectively. 

**These are just hypothetical drawdowns. And excuse the meaningless precision. While based on actual prices, only the general estimates make sense without any false precision. 

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© 2022 George Rahal