You may recall how Long Term Capital Management blew up from using too much leverage, when things went against them. It is not only retail investors getting 'greedy' using leverage either, did you know that not only do Hedge Funds use a lot of leverage, but even Berkshire Hathaway is usually using leverage? I didn't dig into it, but it appears that they often use 1.2x to 2.0x leverage, and they are generally considered to be conservative. The problem is that leverage cuts both ways, it can dramatically increase your gains, and it can also dramatically increase your drawdowns. It is common for people to use leverage, whether in the form of leveraged ETF's, margin, or futures as a way of enhancing returns when things are going well in the markets.
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