Re: Buying on Margin/ Using Leverage?
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is it worth it to use Leverage when investing for the Long term ( a year, 3 years, 5 years, etc.?) or is the commissions usually too high?
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Your "commissions" are the same if you use margin or don't. But the interest that you pay may be kind of high.
If you are paying 8-10%, you might be +EV over a few years. It depends on the type of portfolio you are using. If you are paying 10+%, I would never consider it.
Personally, I would only use margin with a globally diversified portfolio, but I wouldn't use it with rates this high.
-Tom
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