Let’s look at how risky it actually is. The performance is so good that after a couple of years the accuracy rises to 100% because you have no losses. That means the real risk is zero.

Another way to look at how risky TQQQ is can be seen in the performance of the Stars buy and hold strategy. Stars contains 40% TQQQ at annual rebalancing. Over the past 26 years Stars outperformed the S&P by a factor of 17. Over the past 70 years financial advisors and investors have underperformed the S&P by 5% per year.

What other objections are raised about TQQQ? Some have said that because it is a triple it has time decay. TQQQ is not an option. It has no time decay. In ‘23 it rose 800% in 18 months. What it does have is volatility. At tops the volatility is low and coming off bottoms it is very high.

Another objection is that in a market correction you could lose everything. In market corrections you do have drawdown. That is what dictates that the maximum concentration of TQQQ at rebalancing is 40%. Drawdown is not a loss; it is just a temporary reduction in portfolio value.

TQQQ is what gives the Stars strategy its phenomenal performance. TQQQ always holds the best performing stocks. It is constantly upgrading what it holds.