"Smart men go broke three ways: liquor, ladies, and leverage." -- Charlie Munger (Which is not to imply that these are smart men).
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After Losses, Retail Investors Flock to 3x Leverage as 2x Product Are Restricted
31–40 of 129 posts
Re: After Losses, Retail Investors Flock to 3x Leverage as 2x Product Are Restricted
#32For 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 (whic…
Housing usually is needed for living. Not a status symbol for dating. I see how it can help the same way as not starving to death will also help with dating, but the framing is odd.
Re: After Losses, Retail Investors Flock to 3x Leverage as 2x Product Are Restricted
#33For 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 (whic…
I wish we had a word for this, where everyone’s getting rich, there’s a run on stocks, but prices of assets are all going up. Some people are missing out completely whereas a select few hoard wealth in other forms. And of course the government starting to notice and trying to intervene.
Re: After Losses, Retail Investors Flock to 3x Leverage as 2x Product Are Restricted
#34For 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 (whic…
With housing their being so cheap, what the hell is the problem anyway? It's impossible to have expensive real estate in a country that's dying out fast.
Re: After Losses, Retail Investors Flock to 3x Leverage as 2x Product Are Restricted
#35For 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 (whic…
Housing usually is needed for living. Not a status symbol for dating. I see how it can help the same way as not starving to death will also help with dating, but the framing is odd.
Referring to ownership, not renting
Re: After Losses, Retail Investors Flock to 3x Leverage as 2x Product Are Restricted
#36Earlier quoted context omitted.
If China takes over Taiwan, TMSC's assets are being reduced to rubble before Taiwan's first shot back.
Which is why Taiwan is safe until china can produce domestically because their power comes from exports. China is not going to sabotage themselves like that.
I thought Taiwan is safe until the US can produce domestically, no?
Re: After Losses, Retail Investors Flock to 3x Leverage as 2x Product Are Restricted
#37For 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 (whic…
I wish we had a word for this, where everyone’s getting rich, there’s a run on stocks, but prices of assets are all going up. Some people are missing out completely whereas a select few hoard wealth in other forms. And of course the government starting to notice and trying to intervene.
Irrational Exuberance
Re: After Losses, Retail Investors Flock to 3x Leverage as 2x Product Are Restricted
#38For 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 (whic…
With housing their being so cheap, what the hell is the problem anyway? It's impossible to have expensive real estate in a country that's dying out fast.
>It's impossible to have expensive real estate
no it's very possible because in an aging country people relocate to a handful of cities. 50% of South Korea's population now lives in the Seoul metropolitan area. The real estate that's getting cheaper is the one decaying in the countryside.
It's like saying Russia can't have expensive real estate because the country is big, what matters is where people are actually moving.
Re: After Losses, Retail Investors Flock to 3x Leverage as 2x Product Are Restricted
#39The problem isn't leveraged funds, it's margin on leveraged funds. Leveraged funds are the safest way for the average investor to get access to leverage because unlike margin there is no risk of margin calls, and your money generally won't go to zero unlike options which are vastly more complicated and can expire. The reality is that using leveraged funds (or any leverage) is a completely rational move because the av…
Leveraged funds can be an excellent tool for portfolio construction, for example, products like 100% stocks + 100% bonds (so -100% cash; internally borrowed in the ETF), e.g. RSSB.
And just because it's available doesn't mean it should be your only ETF/ETP. Not a recommendation or advice, but something like 50% TQQQ, and 50% risk-off asset (gold, bonds, whatever); rebalanced regularly isn't crazy, and might even have alpha.
Re: After Losses, Retail Investors Flock to 3x Leverage as 2x Product Are Restricted
#40Are other countries like the West where 'markets' (equities, derivatives, prediction) have a wide ranging pervasive effect on culture?
Do you consider South Korea the "West"?