A 3x inverse leveraged short ETF on the NASDAQ would inevitably decline rapidly over time, given historical performance of the market. The chart reflects that when set to max on Google. Given its history, it seems like it would almost definitely be a bad investment
However, with a recession in sight, let's say for instance the Nasdaq declines to 6,000 (catastrophic, I know). On a regular three times leverage, this would be about a 150% return. Since it resets daily, these percentages compound very quickly and the gain would be much more significant. However, the opposite is also true. Am I understanding this correctly, and do I sound dumb for considering this?
Also, this is the same way that GUSH works, right?
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