Leverage is borrowing money to invest. It can boost your returns in good times and amplify your losses when the market turns against you.

This week we look at the different types of leveraged investments and how to employ them. We discuss the pros and cons of investing with margin loans, leveraged ETFs, and options. And the surprising evidence for using leverage to reduce retirement risk...

And in today’s Dumb Question of the Week: "If your broker sells your stocks in a margin call, can you be left owing more money than you invested?"

Selected links

• Life-Cycle Investing and Leverage: Buying Stock on Margin Can Reduce Retirement Risk
• Federal Reserve Financial Stability Report: Leverage in the Financial Sector (May 2022)

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Disclaimer

This podcast is for informational and entertainment purposes and is not financial advice. We do not provide recommendations or endorse any decision to buy, sell or hold any security. We cannot be held responsible for any actions listeners may take and investors are encouraged to seek independent financial advice.

Copyright 2023 Many Happy Returns