Article Directory
Alright, let's talk about this TQQQ stock split. Another day, another chance for Wall Street to fleece retail investors, right? This whole thing with Long Run Wealth Advisors LLC throwing half a million bucks at 6,391 shares... I mean, are they trying to lose money? Long Run Wealth Advisors LLC Invests $530,000 in ProShares UltraPro QQQ $TQQQ - MarketBeat
Triple-Leveraged Trouble?
TQQQ, for those blissfully unaware, isn't your grandma's index fund. It's a triple-leveraged ETF tracking the Nasdaq-100. Translation: it aims to magnify your gains... and obliterate your losses, three times faster. A 2-for-1 stock split on November 20th? Sounds exciting, right? More shares for the same pie! Except...the pie is still the same size. It's like cutting a pizza into smaller slices so people think they're getting more. Wake up, people.
And the dividend? A whopping 0.3% yield? That's less than you get from most savings accounts. Seriously, is this some kind of elaborate joke? They pay out $0.0978 per share one quarter. Whoop-de-doo.
Howard Capital Management Inc. increasing their position by 1,071.0%? Kingstone Capital Partners Texas LLC jumping in with almost $400 million? That's either insane confidence or insane stupidity. Or, maybe, they know something we don't. Occam's razor suggests it's probably the latter.
Follow the (Dumb) Money
Oriental Harbor Investment Fund and IMC Chicago LLC boosting their holdings... it's a feeding frenzy. Everyone wants a piece of this volatile beast. But here's the thing: TQQQ is designed for day traders, not long-term investors. It's a short-term adrenaline shot, not a retirement plan.
The fund seeks to deliver triple the daily performance of the NASDAQ-100. Key word: daily. Compounding works wonders on the way up, but it's a monster on the way down. And let's be real: what goes up must come down, especially in the tech sector.
It's got a beta of 3.46. Meaning it’s over 3x more volatile than the market. A one-year high of $121.37 and a low of $35.00? You could make a killing, or you could lose your shirt. It's gambling, plain and simple.
The opening price on November 7th was $113.24. So what? It'll be different tomorrow. It'll be different in an hour. That's the point.
Details on why these firms are throwing money at TQQQ are scant. Are they hedging bets? Are they just chasing the dragon? Or are they just plain wrong?
The House Always Wins
This whole TQQQ situation reminds me of those carnival games where you throw darts at balloons. Looks easy, right? Everyone's a winner! Except, the carny controls the game. He knows the angles, the wind, the cheap darts. You might win a stuffed animal, but he walks away with your cash. Wall Street is the carny. TQQQ is the balloon. And you... well, you get the picture.
The 50-day moving average is $102.91, and the 200-day is $85.82. Technical analysis? Give me a break. It's tea-leaf reading for finance bros.
So, What's the Catch?
Look, I ain't saying TQQQ is evil. It's a tool. A dangerous, highly volatile tool that can make you rich or leave you crying into your ramen. But let's be real: for most people, it's a fool's errand. It's chasing a get-rich-quick scheme that's more likely to get you rekt. And honestly, Wall Street is laughing all the way to the bank offcourse. Maybe I'm just getting old and cranky.