If the left tail (Czarist Russia) really happened, using leverage might produce a situation of owing money. Maybe I wrong about that...Well, mathematically they probably wouldn’t. Volatility drag has a real negative impact.
That’s an interesting way to look at it. Are you basically saying someone who can be emotionless or maybe just avoid looking at their account for years, would be better off with 100/0 rather than 80/20?
As a thought experiment, why 100 instead of 160 or 200? Just piling on risk isn’t always the answer.
Then again, if the left tail happened, perhaps everybody (including the lenders) will have left town.
Statistics: Posted by dogagility — Thu Jan 23, 2025 8:10 pm — Replies 157 — Views 10075