I also hold the Direxion Daily 20+ Year Treasury Bull 3x Shares ETF (TMF), which is a more aggressive play compared to TLT, as it offers triple leverage on long-term U.S. Treasuries. This leverage amplifies both gains and losses, making TMF a high-risk, high-reward investment. Although the price I initially bought TMF at is higher than the current level, leaving me temporarily in the red, I'm still optimistic about its future potential.
I believe that if interest rates begin to decline, particularly in the case of an economic downturn or the Fed shifting to a more dovish stance, long-term bonds will likely rally. TMF, with its 3x leverage, could see a significant upside in that scenario. Of course, it comes with higher volatility, but I see it as a tactical addition to my portfolio for capitalizing on the possibility of falling rates in the future. My long-term outlook and willingness to endure short-term fluctuations keep me confident in the potential for TMF to deliver strong returns down the road.
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