Altruists who don't care too much about risk (and young people in general) should plausibly use leveraged investing. What's the best way to get leverage?
- Margin borrowing seems like the default solution. I might try it if there's nothing better.
- Theoretically options could be used, but I'm unsure whether they work in practice.
- Supposedly futures offer massive leverage, but I haven't explored the details, and they seem hard to trade yourself. I'd like something I can just buy and hold for a long time.
- Something else?
Ideally, there should be a fund that you just buy into to get leverage, with someone else handling the details. But leveraged ETFs don't work because they're optimized for day trading and as a result lose money for buy-and-hold investors.
Do you mean in my "Do Call Options Have High Expected Returns?" piece or elsewhere?
What are worse? Theoretical predictions?
Why not? Shouldn't all capital markets have about equal expected returns? Or do you mean that some markets have higher returns due to higher systemic risk?
I haven't seen such evidence anywhere.
On the efficient market story it doesn't matter for returns whether you invest in the US or abroad. But (1) the non-capital investments of philanthropists with your values are particularly tied up in the US, and so if it make no difference it seems bad to take on the extra corr... (read more)