Leverage for the long run thoughts

(Last Updated On: August 28, 2016)

Leverage for the long run thoughts

From George via Facebook:

Hi Bryan, I thought that you may be interested in an article called “Leverage for the Long Run”. It states that ” When the stock market is in an uptrend (above its Moving Average), conditions favor leverage as volatility declines and there are more positive streaks in performance. When the stock market is in a downtrend (below its Moving Average), the opposite is true as volatility tends to rise.” They proposed a model of leveraging SP500 when it is above the SP500 and buying T bills during the more volatile period when the market is below the moving average. Here is the link to the article. https://pensionpartners.com/leverage-for-the-long-run/

What are your thoughts on this model?

Simply, it is no different than another technical indicator  where moving average is best! Good one

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About caustic

Hi i there My name is Bryan Downing. I am part of a company called QuantLabs.Net This is specifically a company with a high profile blog about technology, trading, financial, investment, quant, etc. It posts things on how to do job interviews with large companies like Morgan Stanley, Bloomberg, Citibank, and IBM. It also posts different unique tips and tricks on Java, C++, or C programming. It posts about different techniques in learning about Matlab and building models or strategies. There is a lot here if you are into venturing into the financial world like quant or technical analysis. It also discusses the future generation of trading and programming Specialties: C++, Java, C#, Matlab, quant, models, strategies, technical analysis, linux, windows P.S. I have been known to be the worst typist. Do not be offended by it as I like to bang stuff out and put priorty of what I do over typing. Maybe one day I can get a full time copy editor to help out. Do note I prefer videos as they are much easier to produce so check out my many video at youtube.com/quantlabs