The Traderszone Network

Published in TZ Latest News 16 September, 2014 by The TZ Newswire Staff

What’s The "Best" Way To Make A 10% Return?

Aside from the “sure thing” of buying the Alibaba IPO, achieving a 10% yield return in the new normal world requires leverage and excess risk-taking. To compare the risk/reward of various assets, Citi accounts for haircuts and leverage costs of the typical investor and finds an investors needs a 1.9x leverage in the S&P 500, 8.1x leverage in Treasuries, and 2.3x leverage in high-yield to achieve (based on historical norms) the required return.

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