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Technology Stocks : Semi Equipment Analysis
SOXX 316.33+1.3%Dec 10 4:00 PM EST

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To: Gottfried who wrote (68766)6/5/2015 10:05:56 AM
From: Elroy  Read Replies (1) of 95559
 
I never used margin much and I've been investing since about 1994. I recently took out a large margin position (about 15% of my brokerage account assets) and bought a bunch of high yield stuff, like these 2x levered ETNs and some higher yielding MLPs.

The theory is the margin costs me 1.5%, the stuff I bought pays 10%-15% on average.
I'll hopefully just hold onto the high yield stocks and they'll pay off the loan as time passes. It may not work, but I like the idea. I don't trade the high yield stuff, I just sit around and collect the distributions/dividends.
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