Leverage: No margin for error
Many Happy Returns
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The Potential Benefits of Leverage
The potential benefits of leverage are you amplify your gains, right? In a rising market. So let's say that equity on average, rises by six %. If you get a multiple of that, so you borrow money to invest money. You can amplify that gain, presumably, so long as your borrowing costs are lower than the gain you're making. Yes. I think the thing with leverages, i only really hear about it and people taking it on when things are euphoric, which is presumably the exact time you are not meant to be taking on additional risk. Well, i think the difficulty is sticking with it. But generally, people do take on leverage when markets are soaring upwards
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