As you may know, machines are increasingly expected to replace certain forms of human labor. Whether a machine takes your job, or not, you probably still want to be an owner of the top companies making those machines. As we explain in our book, “Investable Benchmarks,” one of the most important defenses against artificial intelligence (AI) may be to own the technology matrix.
So, what is the best way to own the leading AI companies?
Own The Matrix
In addition to the S&P 500 and the Nasdaq-100, ETF PM has been employing active tactical exposure to certain leading leveraged instruments including the concentrated 3x FANG+ ETN (FNGU). Over the past 5.4 years since inception, FNGU has returned 231% which was more than 3x the S&P return of 68%. In fact, FNGU even outperformed the”American Dream ETF,” the 3x Nasdaq-100 (TQQQ), which delivered 171%.
Control Risk
While the leveraged instruments shown here have done very well at times, they are far more complex and volatile than the S&P 500. Always remember that risk assets can be extremely dangerous, especially when using leverage. Just be sure to invest with caution, take baby steps, and employ an overriding sell discipline to control risk as needed.
ETF PM has long positions in FNGU, TQQQ, QQQ, QQQM, SPXL, and IVV.
See our prior posts on QQQ and TQQQ: 5/23b, 5/23, 3/23, 11/22, 2/22c, 2/22b, 2/22, 11/21, 8/21, 3/21, 12/20, 11/20, 10/20, 9/20b, 9/20, 8/20d, 8/20c, 8/20b, 8/20, 6/20c, 6/20b, 6/20, 4/20, 3/20, 1/20, 12/19, 4/19, 10/18, 7/18, 4/18, 7/17, 6/17.
