Saturday, April 4, 2026 
Risk Aversion and Leveraged ETFs
As the days progress, the signs point all in one direction: that risk is vastly undervalued. We may not see it this undervalued for many years to come. My risk aversion positioning remains intact.
Since July 10, I called the flop and the market raised. Coming from a position of strength, I re-raised. The market called and now it’s time for the turn. Whatever the turn is, I’ll commit more.
Speaking to my traders today about which paper to buy, our discussions turned to the advantages of leveraged ETFs. Pro Shares is being sued over these products because of the inherent whipsaw volatility risk (h/t Sober Look).
These products are advantageous in times of extreme volatility because (as the below chart shows) accelerations in velocity are observed.
Acceleration
