The ProShares Ultra S&P500 ETF (SSO) provides 2X leverage on the S&P 500, making it a popular choice for swing traders seeking amplified exposure. However, this leverage also causes long-term decay, primarily due to beta-slippage and market volatility, which results in a marginally negative drift over one-month and one-year periods. While SSO has outperformed the SPY ETF in terms of long-term annualized returns, it underperforms on a risk-adjusted basis because of its higher volatility and negative drift. Therefore, SSO is best suited for active traders and tactical allocations rather than long-term investors, who may suffer from persistent value erosion, especially in volatile markets.
The S&P 500 index is approaching its highest valuation ever, driven mainly by tech stocks, indicating a potential market bubble. The ongoing conflict in Iran is likely to trigger an inflationary shock due to rising oil prices and higher bond yields, ...
Samuel Smith highlights the Federal Reserve's possible shift in monetary policy as the most significant factor influencing current markets, overshadowing other issues like energy prices and trade relations. This potential Fed pivot could have major i...
The Roundhill S&P 500 Target 20 Managed Distribution ETF (XPAY) provides exposure to the S&P 500 through long call options and targets a 20% annual distribution, mainly as a return of capital. This structure benefits income-focused investors by offer...
As of June 1, 2026, five of nine major global stock indexes are in positive territory for the year. Japan's Nikkei 225 leads with a 31.8% gain, followed by the U.S. S&P 500 (+11.0%) and Canada's TSX (+9.5%). Meanwhile, India's BSE SENSEX has fallen 1...
AI-focused technology stocks have seen strong gains, but current enthusiasm appears unsustainable due to geopolitical and economic risks. Major companies are reducing AI token usage, raising questions about cost-effectiveness and unclear productivity...
