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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