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> if every individual investor bought the S&P with leverage You could also go broke! (or at least significantly underperform historical averages.) Sure, you ca
by Thrymr 2y ago
> if every individual investor bought the S&P with leverage
You could also go broke! (or at least significantly underperform historical averages.) Sure, you can make higher returns by taking more risk. That's not most people's tolerance in a retirement portfolio.
There are plenty of other ways to diversify besides a 60-40 portfolio that are a lot lower risk.
- ldjkfkdsjnv 2y agoMost people arent educated on how leverage isnt that scary, whats scary is working a job for 50 years
- mikestew 2y agoIf you don’t want to work a job for 50 years because your portfolio got blown out, don’t buy stocks on margin. At least that’s what people who have been “educated on leverage” do.
- jltsiren 2y agoWhat is scary is living in a society, where doing something productive most of your life is undesirable.