No. of Recommendations: 9
It's just leverage. Leverage is good when things are going up, and bad when they're going down.
I tend to agree with the observation that the Nasdaq 100 type of firms have historically grown in value MUCH faster than the average firm, and might continue to do so for some time into the future.
But leverage on those puppies? Maybe not. I doubt someone who started around the millennium would have had much of a portfolio left in October 2002. Having a multi-year horizon for your intentions might be good, but two year options aren't quite a match for those intentions.
That being said, it's probably a fantastic idea if you start it when that group of firms has just sold off to very cheap levels.
Jim
