Since a lot of us here have expressed interest in not starving to death in a gutter, I figured I'd start a weekly thread to discuss financial matters.
Ground Rules
- Remember that we're all just Internet randos. Don't bet your life savings on a hot tip from this thread.
- Keep culture war in the culture war thread. Yes, global events may impact our personal finances, but that does not mean we have to incessantly harp on culture war aspects here. If you are going to discuss it, please stick to the practical impacts of it on an individual level.
- Be kind. Remember that everyone here comes from different circumstances. We all have different resources available and different risk tolerances.
- Don't let the perfect be the enemy of the good. Better is better. Celebrate people when they take a step up and work to move their finances in the right direction. Don't flame out because they haven't followed what you consider the optimal path. Everybody has to start somewhere.
Jump in the discussion.
No email address required.
Notes -
I've attained about a 16% average annual return over the past decade via a globally diversified, leveraged equity portfolio. I've lightly experimented with things such as leveraged fixed income on the side, but once the yield curve flattened I didn't think that would work so I exited and haven't returned to it (yet).
However, I do not consider this beating the market, as I attained the greater returns through greater risk. In fact, I underperformed by having to pay the implicit borrowing costs of leveraged ETFs and the elevated management fees compared to non-leveraged funds. This risk and underperformance I accept as the tradeoff for potentially greater total returns.
A lot of amateur investors may believe they outperformed the market, when they just got lucky via gambling, taking on greater risk, and/or tilting towards certain countries/sectors/risk factors.
More options
Context Copy link