Best Business Commentary

You can make a lot of money through leveraged investing, “which is Wall Street speak for ‘using borrowed money,’” says Allan Sloan in The Washington Post. With so many people resolving to spend “more time with family” in the new year, it’s a good time to

Leverage and Lady Luck

You can make a lot of money through leveraged investing, “which is Wall Street speak for ‘using borrowed money,’” says Allan Sloan in The Washington Post. But if you time it wrong, “it’s like having the football team you’re rooting for give up a touchdown on the opening kickoff—before you can blink, you’re in the hole.” Leverage is the “secret sauce” that has made buyout firms and hedge funds so profitable recently. But it’s easy to “look like geniuses” when times are good. Next time you read about “eye-popping numbers” from a firm or trading desk, look to see how much of the return comes from leveraged money. And be wary.

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