Author Topic: 20 year bear market?  (Read 3259 times)

scorpioncapital

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Re: 20 year bear market?
« Reply #10 on: March 20, 2009, 03:38:37 PM »
If you invest in a 2x leveraged index ETF you could double your returns and get their in half the time.

Or, what about a 3x?   1/3 the time?    Possible?  Prudent? 

Let me pose a question - If you believe equities are poised to return 10%+ annually over the next 7-10 years) would you consider holding a 2x leveraged index for the long term? 



Not 2x, but 1.33x sure. I'd be comfortable with 35% leverage, but why do it with an ETF? I would rather do it with Berkshire stock. Here you have a company that is very likely to outperform the index by a few points.


Viking

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Re: 20 year bear market?
« Reply #11 on: March 20, 2009, 04:16:59 PM »
Back in 1999-2000 the optomism was surreal. I still remember reading the Globe &Mail in Starbucks in Toronto in 2000. They had a feature article on Nortel and a full page graph of the stock price which at the time was over $120 and I think it accounted for 1/3 of the TSX market cap.

Fast forward to today. Sadly Nortel is going out of business. Lots of good lessons have been given by the market. Bottom line, value investors stand a much better chance of realizing a much better return over the next 8-10 years!

From this point in time, I wonder what lessons will given by Mr. Market over the next 5 years or so...