* Most investors' returns are below index returns.
* If everyone starts leveraging the index, that strategy becomes less effective.
* Leverage subjects you to even bigger drawdowns than just buying the index. Do you think the average investor, who can't even manage drawdowns from the index can handle drawdowns bigger than drawdowns on the index?
Besides, who said people don't make money? Also, notice how you switched from "active trading beats passive indexing" to "leverage the index." Are you saying you can't time the market? That you don't have the ability to make correct decisions about both when to get in and when to get out?
I used to work in finance. I’m sorry that you’ve been reading that index funds are the end all be all, but they’re really for people with no time or no brain cells.
If you were leveraged in March and held through the draw down, you are massively up.
NYC is full of prop shops with a few employees making 100% returns on a five million dollar portfolio. Just because you’ve never heard of those places doesn’t mean they don’t exist.
Stop polluting the world with your middle class ideas of money management
If your Joe has enough saved to feel comfortable gambling with a few thousand bucks then sure, actively trading might be worthwhile.