A listed geared sharefund. It wasn't so much the fund performance that was the key to success but the TIMING. The advantage of the fund was being able to gear without taking on the risk of borrowing yourself, no margin calls, and you can contribute small amounts monthly. Much more flexable than margin lending or instalment gearing and not as risky as betting your house Storm Financial style. Although there was nothing wrong with the Storm Financial idea apart from the TIMING. C
Nothing wrong with the idea of borrowing against property to invest in the sharemarket. Lower interest, no margin calls. Still high risk, but quite an acceptable strategy in a rising sharemarket. A killer in a crashing market, that's why timing is crucial. Admittedly Storms model was ultra high risk. Double gearing and continuing to borrow as equity rose is just taking it way too far. Still would have worked if they'd pulled their profits out. C
rising tide lifts all the ships.. every strategy works when market rise.... even kids can just buy and hold and still make money.