The Stacking Benjamins Show · Friday, October 2, 2026
OG advises against investing 10% of a portfolio in a leveraged stock market fund, citing a potential to lose 98% of the investment. He explains that the daily reset mechanism of leveraged ETFs amplifies losses on down days, making them risky for long-term holding.
“I am out. And the worst thing that happens, which will actually happen, it's not hypothetical, but it will. You lose 98% of your money.”
“Leveraged ETF positions are meant to be a daily traded thing. So you're betting on the daily movement of that index or that thing, whatever you're betting on.”
“But because it's a daily reset... and the multiplier effect is 2x, 3x, whatever, If you have a negative day, it's negative day times 3x. And now it resets back to zero. So it's not like you can have like five straight days in a row and have them be good and offset one of the bad days.”