This particular model I have been using exclusively since 2016 and earlier version since about 2009, everything is back tested as well back to 1928.
My experience with margin accounts is a bit different, using Interactive brokers, when the market goes down, they will sell part of your holdings (SPY for example) to maintain their Margin requirements, so I stay away from margin, worst is to get part of your portfolio liquidated close to the bottom… The other option is taking a credit, but with the interest rates today, also not a great option, also those 2 options are not available when investing with employer provided investing options…
I agree that the current interest rates are making Buy and Hold not very attractive, but still, I have to invest somewhere and my model is not about beating the market, but making it safer by moving in cash before the bottom and reducing the drown downs by 50%
This particular model I have been using exclusively since 2016 and earlier version since about 2009, everything is back tested as well back to 1928.
My experience with margin accounts is a bit different, using Interactive brokers, when the market goes down, they will sell part of your holdings (SPY for example) to maintain their Margin requirements, so I stay away from margin, worst is to get part of your portfolio liquidated close to the bottom… The other option is taking a credit, but with the interest rates today, also not a great option, also those 2 options are not available when investing with employer provided investing options…
I agree that the current interest rates are making Buy and Hold not very attractive, but still, I have to invest somewhere and my model is not about beating the market, but making it safer by moving in cash before the bottom and reducing the drown downs by 50%