After Losses, Retail Investors Flock to 3x Leverage as 2x Product Are Restricted
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Re: After Losses, Retail Investors Flock to 3x Leverage as 2x Product Are Restricted
#2It’s just gambling, not investing.
Re: After Losses, Retail Investors Flock to 3x Leverage as 2x Product Are Restricted
#3It’s just gambling, not investing.
Not the first time, not the last either. https://www.pbs.org/wgbh/pages/frontline/creditcards/themes/...
https://www.bis.org/publ/bppdf/bispap46k.pdf
South Korean gamblers are the index species of any global credit bubble.
Re: After Losses, Retail Investors Flock to 3x Leverage as 2x Product Are Restricted
#4Are other countries like the West where 'markets' (equities, derivatives, prediction) have a wide ranging pervasive effect on culture?
Re: After Losses, Retail Investors Flock to 3x Leverage as 2x Product Are Restricted
#5Are other countries like the West where 'markets' (equities, derivatives, prediction) have a wide ranging pervasive effect on culture?
Around the Evergrande collapse there were stories about Chinese retail investors who had pushed money into their domestic real estate industry’s stocks.
Also you might painting too wide a brush with “the West”. I wouldn’t assume that Americans and, say, Austrians have similar exposure to public markets.
Re: After Losses, Retail Investors Flock to 3x Leverage as 2x Product Are Restricted
#6The story we were telling young people that if they apply themselves, go to school and get a job they'll be able to afford family, house, vacations is moving further and further away for more and more people.
The turn towards financial nihilism will continue.
Re: After Losses, Retail Investors Flock to 3x Leverage as 2x Product Are Restricted
#7"Smart men go broke three ways: liquor, ladies, and leverage." -- Charlie Munger
(Which is not to imply that these are smart men).
Re: After Losses, Retail Investors Flock to 3x Leverage as 2x Product Are Restricted
#8Are other countries like the West where 'markets' (equities, derivatives, prediction) have a wide ranging pervasive effect on culture?
Around the Evergrande collapse there were stories about Chinese retail investors who had pushed money into their domestic real estate industry’s stocks. Also you might painting too wide a brush with “the West”. I wouldn’t assume that Americans and, say, Austrians have similar exposure to public markets.
US household assets are fairly well distributed between real-estate and equity markets. China for example previously had ~70% of its household wealth tied up in real-estate, which has suffered enormous declines over the past four or five years.
That said, there's no question that US households have grown fat on the massive expansion of the tech giants. A one trillion $ market cap was shocking not long ago, now you've got Apple and Nvidia at $4-$5 trillion, each about as valuable as China's top 25-30 stocks combined. The US wealth base is highly exposed to a PE multiple compression event, which is likely whenever the bubbly valuations centered around the AI boom reduce.
Also to put a reference figure on it, China's top 500 stocks are roughly worth $11.5 trillion. Nvidia + Apple are worth a combined ~$9.6 trillion.
Re: After Losses, Retail Investors Flock to 3x Leverage as 2x Product Are Restricted
#9Are other countries like the West where 'markets' (equities, derivatives, prediction) have a wide ranging pervasive effect on culture?
Around the Evergrande collapse there were stories about Chinese retail investors who had pushed money into their domestic real estate industry’s stocks. Also you might painting too wide a brush with “the West”. I wouldn’t assume that Americans and, say, Austrians have similar exposure to public markets.
Auatralians are a great case study. Once you control for pensions and similar indirect exposure, Australians have very high stock market exposure.
Re: After Losses, Retail Investors Flock to 3x Leverage as 2x Product Are Restricted
#10The story we were telling young people that if they apply themselves, go to school and get a job they'll be able to afford family, house, vacations is moving further and further away for more and more people. The turn towards financial nihilism will continue.
Yeah, but it’s also plain greed, and it’d be hard to tell the ratio.