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You can make even more money in the long run if you use leverage to bet on the S&P 500. If you don't believe me, do the math out.
by xyzzy4 11y ago
You can make even more money in the long run if you use leverage to bet on the S&P 500. If you don't believe me, do the math out.
- scottlocklin 11y agoI guess this is tautologically correct, but if you did a 2x levered punt on SPX in 2007, you'd have gone broke.
- xyzzy4 11y agoThat's not true if you sell stock to maintain a certain equity to debt ratio. If you use leverage in the S&P 500 then you have much a faster growth rate, so in the long term it's still better.
- worik 11y agoClearly you cannot do math. It all depends on market timing, and if you get that wrong you will go broke as quick as your leverage. If you can get that right, well you would not be posting here, you would own here....
- jegutman 11y agoThere's a funny story I read a while back about this play. If you did this for long enough eventually you'd be the biggest company in the S&P 500 (technically maybe not, but in practice very much so!).