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.
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 correlation, (2) prices really do look high right now in the US, and there are plausible stories about how that could happen in the existing financial system, so even if you only assign those stories a modest probability, it seems worth moving in that direction.
Do you have a short summary? I could probably fill in the details from even a one line description. I know of several such stories but would be interested in hearing which you find plausible. Certainly there are also several popular but false ones (e.g. Schiller PE)