Anthony Terracciano-Ph.D. Comment On Regulatory Notice 22-08
Anthony Terracciano-Ph.D.
N/A
The stock market is a way to invest in the Future of the United States. Over the course of the history of the U.S. Stock market, it has trended upward. Thus on a long term time scale, the use of margin on an index tracking fund will generate higher overall returns than through pure capital allocation.
When developing my investment portfolio, I ran numerous variations of Monte-Carlo Simulations identifying the nominal expected returns across decadal time spans using various equities (SPY, QQQ, TQQQ, UPRO, AAPL, MMM, LMT, and other blue chip stocks). Unequivicoably, the simulated profile indicated the probability of being positive in real terms after 5 years was very high even when accounting for real inflation, and even interest rate hikes.
From these simulations I have applied my entire portfolio (2,600 and counting shares) to amassing TQQQ every paycheck. I am acquiring shares through a combination of limit buy and put option sales.
I have chosen this strategy as the ability of consumers to utilize leveraged ETFs provides a lower cost and overall safer experience to use margin. Additionally for investors with accounts less than $1,000,000 and nominal incomes, the cost of utilizing margin significantly reduces the nominal risk-adjusted return profile of utilizing margin. Leveraged products such as TQQQ enable the general investment community to utilize pooled resources to reduce costs associated with margin. Additionally, these leverage products reduce the ability of brokers to change margin requirements, which would enter into margin calls.
A long term hold on a 3x leveraged product such as TQQQ or UPRO is a long term bet on America.
For the Public
FINRA DATA
FINRA Data provides non-commercial use of data, specifically the ability to save data views and create and manage a Bond Watchlist.
For Industry Professionals
FINPRO
Registered representatives can fulfill Continuing Education requirements, view their industry CRD record and perform other compliance tasks.
For Member Firms
FINRA GATEWAY
Firm compliance professionals can access filings and requests, run reports and submit support tickets.
For Case Participants
DR PORTAL
Arbitration and mediation case participants and FINRA neutrals can view case information and submit documents through this Dispute Resolution Portal.
Need Help? | Check System Status
Log In to other FINRA systems
Anthony Terracciano-Ph.D. Comment On Regulatory Notice 22-08
The stock market is a way to invest in the Future of the United States. Over the course of the history of the U.S. Stock market, it has trended upward. Thus on a long term time scale, the use of margin on an index tracking fund will generate higher overall returns than through pure capital allocation.
When developing my investment portfolio, I ran numerous variations of Monte-Carlo Simulations identifying the nominal expected returns across decadal time spans using various equities (SPY, QQQ, TQQQ, UPRO, AAPL, MMM, LMT, and other blue chip stocks). Unequivicoably, the simulated profile indicated the probability of being positive in real terms after 5 years was very high even when accounting for real inflation, and even interest rate hikes.
From these simulations I have applied my entire portfolio (2,600 and counting shares) to amassing TQQQ every paycheck. I am acquiring shares through a combination of limit buy and put option sales.
I have chosen this strategy as the ability of consumers to utilize leveraged ETFs provides a lower cost and overall safer experience to use margin. Additionally for investors with accounts less than $1,000,000 and nominal incomes, the cost of utilizing margin significantly reduces the nominal risk-adjusted return profile of utilizing margin. Leveraged products such as TQQQ enable the general investment community to utilize pooled resources to reduce costs associated with margin. Additionally, these leverage products reduce the ability of brokers to change margin requirements, which would enter into margin calls.
A long term hold on a 3x leveraged product such as TQQQ or UPRO is a long term bet on America.
Sincerely Anthony C. Terracciano, Ph.D.