Leverage in the Stock Market

Charlie Munger once said there are 3 ways for a smart person to go broke: liquor, ladies and leverage. It would seem many investors are taking the leverage theory for a test run. The South Korean stock market is on fire, up nearly 200% in the past 12 months alone. Investors there have taken notice and levered up: According to the Korea Financial Investment Association on Wednesday, the outstanding balance of margin loans ...