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You really can't lever up equities all that much. Mom & pop can margin up to 50%. Even professional investors are quite constrained in how much leverage they c

• encoderer 12y ago
  Once there is sufficient liquidity you will see options market makers as you do with other ETFs. Additionally, margin is only strictly constrained under reg-t for accounts under $100k or so. Above that level you can request portfolio margin.
• dnautics 12y ago
  Nonetheless I think the culture of bitcoin as it is currently is more leverage averse than normal which is why the decline this year has not been a precipitous one. My point being that the up and down dynamic of bitcoin will start to change.
• cylinder 12y ago
  Which is ridiculous, because an S&P500 index fund is a much less risky asset over 30 years than a 4-bdrm house on Maple St in Anywhere, Michigan, yet 20:1 leverage is available for the latter. Unfortunately the government favors homes as an asset class and has distorted the market with policy. I'd much rather put $50,000 down on something like a 30-yr mortgage for $250,000 in a diversified index fund than do the same in a house. But alas this isn't an available product.
  • refurb 12y ago
    I'd much rather put $50,000 down on something like a 30-yr mortgage for $250,000 in a diversified index fund than do the same in a house. But alas this isn't an available product. I agree with your point, but at the same time I'm not sure I'd want the irrational exuberance that we saw (and will see again) in the real estate market to start happening to equities!