Leverage is not riskless, but neither is moving your money into fewer and fewer assets. If you want as much expected return as the best asset out there, you have to be only in that asset. Applying leverage to the entire portfolio, you maintain the benefit of diversification. Heat points out that low risk assets are orphans now.
Tyler and investment strategist Cliff Asness discuss momentum and value investing strategies, disagreeing with Eugene Fama, Marvel vs. DC, the inscrutability of risk, high frequency trading, the economics of Ayn Rand, bubble logic, and why never to share a gym with Cirque du Soleil.
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