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Re: lrp42 post# 39802

Friday, 08/14/2015 11:21:39 AM

Friday, August 14, 2015 11:21:39 AM

Post# of 47133
I have been thinking of how to use various leveraged funds recently.

The risk is that in a big crash they may go to zero.

So not Aim but.

Put 10 to 30% in a 3x leveraged ETF and put the remainder in the non leveraged index

Look to rebalance monthly, quarterly, or when out of ballance by some persentage..

This will gradually have you moving money from the leveraged fund to the non leveraged fund in up markets for safekeeping. In a down market money will safely be in the non leveraged fund, even if it does go down also.

On a really big drop, thought may be given to increasing the percent allocated to the leveraged fund maybe up to 50% for awhile.

Toofuzzy

Take the road less traveled. It will make all the difference.

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