Are other countries like the West where 'markets' (equities, derivatives, prediction) have a wide ranging pervasive effect on culture?
The Indian derivatives market is huge. Lots of people gambling there.
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
#12Especially in Korea, I know there's a sense of despair in the young adult population on their future. How will they afford to get married, have kids, have a house? Leads to chasing financial outcomes that are uncertain - crypto boom in Korea years back is an example
Re: After Losses, Retail Investors Flock to 3x Leverage as 2x Product Are Restricted
#13The 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.
The threshold for greed is higher than the median net worth of an American. We tell people they need "generational" wealth to a make it in this country because housing, education, and healthcare are all so expensive
Re: After Losses, Retail Investors Flock to 3x Leverage as 2x Product Are Restricted
#14For a second, it appeared some found out.
https://www.reutersconnect.com/item/south-korean-retail-inve...
But it seems there's still a lot in their FA phase in the FAFO cycle.
Re: After Losses, Retail Investors Flock to 3x Leverage as 2x Product Are Restricted
#15Earlier quoted context omitted.
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…
Both NVIDIA and Apple derive much of their wealth from off-shored manufacturing to… drumroll… China! (PRC+ROC)
If China decides to take over Taiwan and nationalises TMSC, redirecting their top tier silicon to 100% Chinese companies then what are the American firms worth?
Re: After Losses, Retail Investors Flock to 3x Leverage as 2x Product Are Restricted
#16[dead]
Re: After Losses, Retail Investors Flock to 3x Leverage as 2x Product Are Restricted
#17Are other countries like the West where 'markets' (equities, derivatives, prediction) have a wide ranging pervasive effect on culture?
Korea. A lot of people have been gambling on margin.
Re: After Losses, Retail Investors Flock to 3x Leverage as 2x Product Are Restricted
#18The 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.
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Re: After Losses, Retail Investors Flock to 3x Leverage as 2x Product Are Restricted
#19The 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.
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Re: After Losses, Retail Investors Flock to 3x Leverage as 2x Product Are Restricted
#20For those who don't know what's going on in Korea, KOSPI is up 3x in the last year and a large amount of HBM employees have made huge amounts of bonus pay. This has led to an insane FOMO frenzy in a society that's already very competitive.
Add to that, stock gains in Korea are often used to finance housing purchases (or real estate investment) so many retail investors are scared of being "locked out" of housing (which is a requisite status symbol for dating or marriage) if they're not making the same capital gains others are.
Currently Korean social media is full of stories of leveraged day traders who've gotten rich the past year, HBM employees who've made bonuses worth decades of salary (e.g. memes of Samsung employees in luxury cars), etc. Lots of comments along the lines of "everyone is getting rich except me". It's all reminiscent of the crypto frenzy in the US a few years ago but way more intense and concentrated.