- portfolio up 36.54%
- S&P 500 Price Return up 9.00%
- S&P 500 Total Return up 8.39%
OK, I know it looks like I'm super duper levered, but look back at the positions I've used to get these gains.
That said, I just came across a link to a new paper out by a pair of Yale professors who have found that young investors should be more than 100% invested in equities and buying stock on margin when they are young, and gradually becoming unlevered into a more conservative asset allocation as they age. This confirms what I've intuitively been doing as at 22 (just turned) the small amount of savings I have are a small small portion of what I'll save over the course of my lifetime (hopefully). Instead of contributing to my 401K I will be contributing to my margin account for the first 5 years of my professional career.
I hope more research is done and the rules are rewritten for young investors. I think its reasonable that accredited investors be expanded to individuals under the age of 29 without kids making more than $50,000 a year. Most young people are too busy to keep up with the market the way investing on margin requires and would need professional management, hedge funds are the only way to get this on margin.
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