From what I've seen even when they do things that are "sound" they crank them up to 11 so that if something goes wrong it becomes a bloodbath.
Back in March there was a guy who got a $275k margin call for leveraging a 55/45 UPRO/TMF portfolio (which itself consists of triple-leveraged funds). Because something that wasn't supposed to happen -- the S&P 500 and long-term Treasuries both being down simultaneously -- happened.
Meanwhile if you just held on to that portfolio unleveraged you did pretty well for yourself last year.
Yeah that's not a bad portfolio at all as-is. I'm not into leveraging on stocks myself anyway. There's plenty of ways to increase risk/reward without buying on margin. I've just learned I'm not the gambling type. I'm still grumpy about my oil ETFs falling apart last year as it is.
They can have their crazy shit, I'll stick to boring stock trading and my real estate investments.
From what I've seen even when they do things that are "sound" they crank them up to 11 so that if something goes wrong it becomes a bloodbath.
Back in March there was a guy who got a $275k margin call for leveraging a 55/45 UPRO/TMF portfolio (which itself consists of triple-leveraged funds). Because something that wasn't supposed to happen -- the S&P 500 and long-term Treasuries both being down simultaneously -- happened.
Meanwhile if you just held on to that portfolio unleveraged you did pretty well for yourself last year.
Yeah that's not a bad portfolio at all as-is. I'm not into leveraging on stocks myself anyway. There's plenty of ways to increase risk/reward without buying on margin. I've just learned I'm not the gambling type. I'm still grumpy about my oil ETFs falling apart last year as it is.
They can have their crazy shit, I'll stick to boring stock trading and my real estate investments.