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Strategies & Market Trends : Young and Older Folk Portfolio

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To: chowder who wrote (5781)6/30/2024 7:58:57 AM
From: SeeksQuality  Read Replies (2) of 21937
 
Chowder, I'm skeptical that this line is accurate:

"I look at long term performance, the market always heads higher and that means SSO must head higher and head higher than SPY."

The construction of SSO means that "must" is too strong a word. It will outperform SPY over some periods, but it is not guaranteed to outperform SPY over all periods, even in the long run. You can characterize this as "fear", but that isn't really the root of the disagreement here.

If you were to stop talking about long term performance, since you have stated you do not intend this to be a buy-and-hold position, then I would have no objections. And I do agree that it will outperform a bull market while underperforming a bear market. The construction pretty much guarantees that much!
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