# Some Thoughts On Portfolio Theory

Modern portfolio theory is basically "Diversify". In the long term,
you can't beat the market. So linear combinations of the market
portfolio and the risk-free asset make the most efficient solutions.
Index fund and gold. According to your risk preference.

Then I thought of the barbell strategy of Nassim Taleb. And I
realized that maybe using a small but levered market portfolio
would make a better result.

## Dialectics

Thesis: Active trading
Antithesis: The market portfolio
Synthesis: Levered market portfolio, actively managing the leverage


So instead of $100k index fund + $100k gold, 2x levered $50k index
fund + $150k gold might make a better result. I haven't tested so
I can't say anything now though. And of course, THIS IS NOT A
FINANCIAL ADVICE. Just my thought experiment.