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This is interesting. The antithesis is probably the book Lifecycle Investing [0] which essentially concludes that you should be 2X leveraged stocks in your yout
by tornato7 3y ago
This is interesting. The antithesis is probably the book Lifecycle Investing [0] which essentially concludes that you should be 2X leveraged stocks in your youth and slowly reduce leverage over time.
0. https://www.lifecycleinvesting.net/ https://www.lifecycleinvesting.net/
- nly 3y agoSo a 50% market drop wipes you out completely? Hrrm, nah
- kqr 3y agoReminder: it takes as long to get from 100 to 1,000 as it takes from 10 to 100 -- it is really important to avoid big drawdowns, which 2× leverage is almost sure to produce. If anything, optimal growth requires fractional leverage, i.e. keeping wealth out of the markets.
- lmm 3y agoFor a few years in your '20s, when your investment is going to be small either way, you presumably haven't got a lot of commitments, and you'll have your whole life to adjust for it if a literal once-in-a-century slump happens to hit at exactly the worst time? I can see the logic.