Leverage is basically at the core of every financial catastrophe, but leverage isn't there alone. Leverage in and of itself is just a tool, right? But you need to be thoughtful about how you use it. It's concentrated leverage that creates that variant velood of whatever for a payroll tax refund of up to $26,000 per employee kept on payroll during COVID-19. Using leverage to buy something different that can diversify you and zig when your original investment zags could be a very prudent use of leverage.
Rebecca Hotsko chats with Corey Hoffstein, and together they discuss the concept of return stacking, its mechanics, leverage determination, fund selection, and a whole lot more!
Corey Hoffstein is the co-founder and Chief Investment Officer at Newfound Research, which is a quantitative investment and research firm managing strategies that implement Return Stacking concepts.
IN THIS EPISODE, YOU’LL LEARN:
00:00 - Intro.
06:08 - The different types of funds that are available to investors to implement return stacking.
06:19 - What return stacking is and how this strategy works?
10:36 - The different ways this strategy can be implemented and the portfolio solutions it provides.
22:31 - How to decide how much leverage to take, and how much return stacking strategies should make up of the total portfolio allocation?
40:03 - The factors that contributed to the poor performance of certain return stacking ETFs since 2021.
42:55 - The common mistakes investors make when implementing this strategy.
46:01- What factors impact the effectiveness of this strategy?
52:49 - How to mitigate risk when this strategy breaks down?
*Disclaimer: Slight timestamp discrepancies may occur due to podcast platform differences.
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