I am not looking for personal investment advice, but rather I'm looking to pose a hypothetical situation as I have been researching 2x ETFs recently and have become curious who these tools may be suitable for besides obvious risk takers.
Let's say we have a young person in their 20's who is starting their first IRA. The money in their Roth or Traditional IRA with be invested for 40+ years until they are eligible to withdraw. Of course the market has up and down years, but over a long term time horizon (20, 30 years) the market almost always nets positive returns. If we know this to be true, what would be the down side to investing in a leveraged 2x ETF tracking the SP500 or Nasdaq until they are about 10 years away from retirement and then beginning to scale back risk? Looking as SSO and QLD specifically.