On: The death of the 60/40 portfolio

[Thrymr]

> if every individual investor bought the S&P with leverage

You could also go broke! (or at least significantly underperform historical averages.) Sure, you can make higher returns by taking more risk. That's not most people's tolerance in a retirement portfolio.

There are plenty of other ways to diversify besides a 60-40 portfolio that are a lot lower risk.

[ldjkfkdsjnv → Thrymr]

Most people arent educated on how leverage isnt that scary, whats scary is working a job for 50 years

[jltsiren → ldjkfkdsjnv]

What is scary is living in a society, where doing something productive most of your life is undesirable.

[mikestew → ldjkfkdsjnv]

If you don’t want to work a job for 50 years because your portfolio got blown out, don’t buy stocks on margin. At least that’s what people who have been “educated on leverage” do.