I’m almost 100% buy-and-hold, market weight investor. I buy 4 different ETFs at steady intervals. Right now, I invest only in equities, real-estate is coming in 2-5 years and bonds a little later. Sometimes, like right now, I’m trying to time the market, and have set aside quite a bit of cash for the eventual crash. But i general I believe that looking to beat the market will end up biting you in the arsch.
By looking at the typical characteristics of equity markets and judging the performance under a range of those characteristics. Don’t get jealous because I’m 2x levered to the MAGA rally
I believe we are in a secular bull, but I think we are about to see a cyclical bear! But I’m really just a short run chicken which is prolly worse than a perma pig. But I really need to get into a diet, to be more stable!
It is structurally different than margin debt in terms of margin calls and stuff, so don’t let the general fear of debt stop you. But if you can’t handle bitcoin like swings in your equities, it is not for you. Dollar cost averaging hides this earlier on, but when you are at Ohai status the pain will be quite acute. But even good ol’ Buffet wouldn’t have the returns he got without leverage. And I’m sure all the companies you actually own have leverage. In general, people are risk averse - but leverage can actually reduce the risk of path dependency on your retirement savings, if you don’t freak out and sell when it is down a lot (the leverage index got hammered recently)
Ive been mostly focused on getting rid of all debt and investing in target funds (401K, IRA). I brought my debt to $0 then bought an investment property so my breakdown looks like
Real Estate ~ 15%
Taxable Trade account ~ 4%
Crypto ~ 1%
Cash ~ 20%
FOF Equities ~ 50%
FOF Fixed Income ~ 5%
ETF ~ 5%
Going forward I’m going to up contribution to retirement and trade accounts and take advantage of the higher interest rates with CD’s or more fixed income