Article Review: Leverage for the Long Run
"Leverage for the Long Run" is one of my favorite articles. It shows that young investors should start by using leverage early on, and only once you meet your investment goals should you pull back and take less risk. In the long run, leverage is less risky as your overall returns are higher. In a stock market crash, you could lose 60% and still have more than very conservative investments like bonds. I wish I knew about this 5 years ago. I could have had much higher returns, especially in this never-ending bull market post 2011. Electronic copy available at: https://ssrn.com/abstract=2741701 Leverage for the Long Run PDF My Experience using Leverage/Margin I started using margin in 2021, after many years of using a cash only account. I read a lot of articles spreading FUD (fear, uncertainty, and doubt) about using margin. They told stories of how people lost all their money very quickly using margin, leveraged ETFs, and options. So I was terrified and never even consi...