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TerraUSD crash led to vanished savings, shattered dreams

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Re: TerraUSD crash led to vanished savings, shattered dreams

#191

Post by synu »

UkrainianJew wrote: post #143
jmyeet wrote: post #31

I occasionally get asked by relatives and friends of what to invest in. Now I'm no expert but I guess in the valley of the blind the one-eyed man is king. Thing is what I tell them seems to bore them because, well, it's boring. My advice is basically this: Put your money in a broad index fund and don't look at it for 10 years. In giving this advice you start to realize it's not what people want to hear. It's not that…

>Put your money in a broad index fund and don't look at it for 10 years. That might be a dead strategy in 2022. After the 2008 crisis the fed discovered a miraculous economic cure: slowly print money and throw it into the economy, so people keep transacting with each other, and the GDP (and stocks) keep growing. Turns out, most of this growth was on paper - fads, speculative investments, overvalued stocks. Now that t…

Something beyond a regression to the mean?

Re: TerraUSD crash led to vanished savings, shattered dreams

#192

Post by dehrmann »

dazc wrote: post #187
Tao3300 wrote: post #107

Earlier quoted context omitted.

Yeah I would not want this guy getting near me with anything sharp if I could avoid it.

Warren Buffet is probably not a great surgeon though?

Remember the time he tried stitching Kraft and Heinz together?

Re: TerraUSD crash led to vanished savings, shattered dreams

#193

Post by stocknoob »

UkrainianJew wrote: post #149
bmitc wrote: post #145

Earlier quoted context omitted.

What do you suggest?

Bonds might become a thing again with the interest rates above 3%.

Bonds will take a hit if interest rates keep rising. (Look at how they’ve done year to date.)

If you want to actually hedge your investments, use a collar.

https://www.investopedia.com/articles/active-trading/011515/...

Re: TerraUSD crash led to vanished savings, shattered dreams

#194

Post by dehrmann »

dubswithus wrote: post #96
bandrami wrote: post #64

Earlier quoted context omitted.

I could take bets on the next mass shooting, too, but I prefer not to make money off of some things that I can nonetheless statistically foresee.

I made 18k betting Trump would lose the presidency with Polymarket. I literally took money from the world’s biggest morons. Feel pretty good about that.

In 2020, a lot of swing states were close, and there was a big shift towards Trump in election results vs. polls. He might have won had he not gotten covid.

Re: TerraUSD crash led to vanished savings, shattered dreams

#195

Post by theplumber »

jmyeet wrote: post #31

I occasionally get asked by relatives and friends of what to invest in. Now I'm no expert but I guess in the valley of the blind the one-eyed man is king. Thing is what I tell them seems to bore them because, well, it's boring. My advice is basically this: Put your money in a broad index fund and don't look at it for 10 years. In giving this advice you start to realize it's not what people want to hear. It's not that…

Why you think someone trades the same stock 10 times per day? (i.e day trader). Isn't that greed? The advantage of crypto/defi done right is that at least you have some transparency and your positions won't be put on hold or liquidated arbitrary by someone like it happened on LME case or GME

Re: TerraUSD crash led to vanished savings, shattered dreams

#196

Post by shimonabi »

jmyeet wrote: post #31

I occasionally get asked by relatives and friends of what to invest in. Now I'm no expert but I guess in the valley of the blind the one-eyed man is king. Thing is what I tell them seems to bore them because, well, it's boring. My advice is basically this: Put your money in a broad index fund and don't look at it for 10 years. In giving this advice you start to realize it's not what people want to hear. It's not that…

Which are broad index funds?

I put a tiny amount of my savings in a pharma ETF last year and got destroyed almost as much as crypto. I hope it recovers soon.

Re: TerraUSD crash led to vanished savings, shattered dreams

#197

Post by SilasX »

Animats wrote: post #129

Uh oh. Heavy withdrawals at USDT.[1] Half a billion dollars pulled out today, all at once. Almost four billion in the last week. The market cap for USDT has dropped from US$84 billion to US$63 billion in the last month and a half. Looks like we're going to find out soon what assets really back Tether. [1] https://coinmarketcap.com/currencies/tether/

Withdrawals are supposed to reduce market cap.

Re: TerraUSD crash led to vanished savings, shattered dreams

#198

Post by lyrrad »

jmyeet wrote: post #31

I occasionally get asked by relatives and friends of what to invest in. Now I'm no expert but I guess in the valley of the blind the one-eyed man is king. Thing is what I tell them seems to bore them because, well, it's boring. My advice is basically this: Put your money in a broad index fund and don't look at it for 10 years. In giving this advice you start to realize it's not what people want to hear. It's not that…

> Put your money in a broad index fund and don't look at it for 10 years.

You should check on their investments accounts on a regular basis.

If your bank or brokerage makes an error, there is likely a limited period of time during which it can be fixed.

Also, if you do not have activity on your bank or investment accounts for a period of time, the contents may be escheated by a state and investments may be sold automatically.

Planet Money had an episode about escheatment a couple of years ago: https://www.npr.org/transcripts/799345159 They mention that Delaware, where the person's broker was incorporated escheats investments after three years.

Re: TerraUSD crash led to vanished savings, shattered dreams

#199

Post by [deleted] »

jmyeet wrote: post #31

I occasionally get asked by relatives and friends of what to invest in. Now I'm no expert but I guess in the valley of the blind the one-eyed man is king. Thing is what I tell them seems to bore them because, well, it's boring. My advice is basically this: Put your money in a broad index fund and don't look at it for 10 years. In giving this advice you start to realize it's not what people want to hear. It's not that…

[deleted]

Re: TerraUSD crash led to vanished savings, shattered dreams

#200

Post by SilasX »

phailhaus wrote: post #15
sumy23 wrote: post #10

Earlier quoted context omitted.

People are so smug when they say “I told you so.” It really bothers me. On every negative story about crypto, so many people comment “hur dur financial regulation dur”. But that’s so easy to say after the fact. If these people really could foresee these events happening, then they could have made a lot of money by taking short positions. That would be a lot more impressive to me than taking cheap opportunities to fee…

Short positions: * Have unlimited downside * Are more difficult to get your hands on It's not really reasonable to expect everyone bearish on crypto to also take uncapped risks.

No. What you’ve described would apply to short selling but not all short positions. If you buy a put on Ethereum (the right to sell at a specific price by a certain date), then you are short Ethereum because you benefit from price declines. Your losses are limited to what you paid for the put. You just need to have the cash for it and you can do so on LedgerX/FTX.
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