3 ms·
If you had started such a scheme in 1999 or 2000 you would be bankrupt by now.
by kgwgk 8y ago
If you had started such a scheme in 1999 or 2000 you would be bankrupt by now.
- smileysteve 8y agoNot if you invested in an adapting basket of stocks (ie, an Index like the S&P 500) used dividends (2% to create a cash cushion) and had access to 0-2% short term debt (ie the Fed bank rate) during every downturn.
- kgwgk 8y agoI was talking about taking $100 (at 01/01/99 or 01/01/00), investing them in the S&P500 (with dividends reinvested), and paying out $7 every Dec 31. You would run out of money eventually. Of course if you add cheap additional leverage at certain moments and time the market successfully you can do better. But that’s not the original proposal.