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from24/7 Wall St.
1 week agoThere Is An Easy Way To Use Leverage To Boost QQQ
ProShares UltraPro QQQ amplifies Nasdaq-100 movements, resulting in significant losses during downturns, exemplified by a 15.5% drop year-to-date.
Mega cap tech stocks have continued to be the key growth engine for the U.S. economy. For many young investors that started investing after the great financial crisis, this has been the way it's been for as long as can be remembered. That said, the reality is that we're living in a much higher valuation environment today than we've seen in many years. And it's also true that over the very long-term, valuations will eventually revert toward some sort of equilibrium level.
The S&P 500 is currently caught between expectations of monetary easing by the Federal Reserve (Fed) and risks stemming from slowing growth. This has led to more cautious trading until clearer signals emerge. In yesterday's session, the standout was Google (Alphabet), whose stock surged 9.14% after a U.S. court issued a favourable ruling, sparing the company from being forced to break up key business segments.