Using margin in long term account?
So I have been researching this on my own, and am hoping someone here can poke holes in my idea / tell me why it won't work.
I grabbed daily data on S&P 500, and found that if for every dollar you invest you borrow 35 cents on margin to increase investment, you'd never theoretically get ato the 1980's. I've called a few brokers and found the best rates to be around 3% (I know you can get better rates on WeBull and Robinhood, but I don't trust them enough to put any significant money with them). My assumptions were that I would rebalance (borrow more) whenever the equity position got close to 80% to get back to original D/E ratio, and make usual monthly contributions. Why don't people do this?