Margin / Leverage

[BlueNote]

Does anyone here use margin or some other form of leverage to get more returns out their stock/bond portfolios? Do you have any advice or tips ?

I have observed quite a few people in the investment advice and PF community denouncing any sort of leverage for investing in liquid securities like stocks and bonds. It seems to be a knee jerk reaction for some people. Some of these folks are inconsistent because they'll then say that it's ok to put 10% down on real estate in order to collect rents.

I am 100% debt free and I have great credit so I can borrow at very low rates. I don't see too much risk in throwing a bit of leverage into the mix, particularly on the safer fixed income side of my portfolio.

Does anyone see a problem with taking a reasoned approach to leveraged investing?

[Sclass]

I'm not right often enough in the short term to guarantee my margin.

[Gilberto de Piento]

I think George the original one had a thread where he was tracking his leveraged portfolio but it was a year or two ago.

[George the original one]

viewtopic.php?f=3&t=975&hilit=leverage+experiment

[Lucky C]

Some of these folks are inconsistent because they'll then say that it's ok to put 10% down on real estate in order to collect rents.

Yeah it's funny how real estate doesn't count in people's minds when it comes to leverage, not just with rental properties but people's own homes. I say if you have a mortgage but are still buying stocks or other investments rather than paying off your mortgage earlier, you're using leverage! But people don't consider having a mortgage as being in debt.