[dawndrain]

> did you do any DD other than taking his advice?

I did some backtesting simulations that made leveraged investing look pretty awesome. The effective borrow rate for funds like spxl is crazy low, way better than if I were to borrow myself. (Also, fwiw I was pretty conservative and am overall only around 2x-leveraged.)

The internet is very opposed to leveraged investing imo, but I think most of the concerns are pretty dumb. There was this one blog post where this guy ran ten simulations of his own, most of which showed the leveraged portfolio doing comparably to the baseline, but one a couple showed it doing worse and one saw the leveraged portfolio 100x'ing or something... and he concluded that it wasn't worth it??

People will also appeal to volatility drag as a superficially sophisticated knockdown (in short, imagine all four two-step paths in which the market goes up or down by 10% at each step. Then the baseline market averages out to (.81 + .99 + .99 + 1.21)/4 = 1, and a 3x leveraged portfolio averages out to (.49 + .91 + .91 + 1.69)/4 = 1. Volatility drag is those two middle worlds where the leveraged portfolio does badly despite the market as a whole basically ending up where it started.

[ZephyrBlu]

Thanks for you perspective. I'm considering using leverage so it's interesting to hear from people who are currently using it.

Also, you might find this tweet and paper interesting:

- Tweet: https://twitter.com/patio11/status/1432891941138563077

- Paper: https://citeseerx.ist.psu.edu/viewdoc/download?doi=10.1.1.89...

[akg_67]

Use keyword “HedgeFundie” (username that first started the discussion on Bogleheads and now most refer this strategy with his name) to search discussions about Leveraged ETFs on Bogleheads forum and Reddit. There are over 300+ pages worth of discussion on this topic only on Bogleheads.

Also checkout information about permanent portfolio put forward by Bridgewater Associates.