Harry Long has written another very good article about how to make a lot of money in the stock market by being essentially long and short at the same time. The short component involves the 3x long-term bonds ETF called TMF at 45% of the portfolio with VXX, the volatility ETF, being 5%. The long component involves 50% SPXL, the 3x S&P 500 ETF. This portfolio would have gained more than 400% since April 2009, and this would have beaten the S&P 500 by almost 3 times.
Part of the strategy involves re-balancing weekly to maintain the proper ratios. For example, VXX can ruin you because of its constant decay, but if you take profits while you have them, the system could work. Also, XIV, the inverse volatility index is currently beating SPXL. So, you might make more money putting 50% of your money on XIV rather than SPXL. The 3x long S&P ETF has been meager in its profits lately, but it definitely worked well since 2009. Click on the chart below to expand it.
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