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WCI #246: Early Retirement Now

White Coat Investor Podcast

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Using Leverage to Diversify Your Portfolio

Carston: Leverage can be dangerous. But if it's used correctly and cautiously, we can even reduce risk. He suggests buying the diversifying asset on margin instead of using leverage to buy more equities. This is something that people have actually used in real world financial applications. And i think by the time i left, it had a 29 year long track record. It had an average out performance over the equity index by three percentage points. I don't think that any any one of my readers has ever implemented it that way.

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