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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

#111

Post by eudamoniac »

itake wrote: post #81
khuey wrote: post #53

Earlier quoted context omitted.

Generally the default fund in a decent 401(k) (employer managed but largely employee funded retirement plan) will be a "target date retirement fund" that contains a mix of equities and bonds according to the expected risk tolerance of someone at that age, and generally the equity component is also split between US and foreign equities. e.g. Fidelity's fund for people planning to retire around 2050 https://fundresearc…

target date funds always confused me, b/c they don't account for the rest of my portfolio. My IRA/401(k) actually has close to 100% cash/bonds to minimize annual taxable impact and the rest of my portfolio is equities.

There is no annual taxable impact in a 401k nor IRA

Re: After Losses, Retail Investors Flock to 3x Leverage as 2x Product Are Restricted

#112

Post by kilburn »

phyzix5761 wrote: post #104
mkotlikov wrote: post #27

The 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…

If you invest only $200 a month in the S&P 500 from the age of 18 to 65 you'll end up retiring a multi-millionaire. It doesn't take a lot but people are either unaware of how it works or not disciplined enough to put aside $200 a month. Considering that on average Americans are spending $150+ a month on subscription services and $300+ eating out there's plenty of room in the budget for investing $200 a month.

There's very few people in the world that can maintain 47 years of uninterrupted discipline. Most people hit one or a number of:

- A significant health issue that also drains them economically

- A broken marriage that cuts their savings in half (or less)

- A low point in their life where saving for retirement just doesn't make sense in their heads anymore because they feel they'd rather die tomorrow.

- A streak of bad events longer than they planned for (the car breaks down, they got fired and their mother-in-law needs financial assistance all at the same time)

- Etc, etc...

The point is: nobody is retiring a millionare through the process you described. Either you save signfiicantly more at certain points (because you earn more) and get lucky enough with the above where you make it there, or you don't retire a millionare even after having saved consistently for many periods in your life.

Re: After Losses, Retail Investors Flock to 3x Leverage as 2x Product Are Restricted

#113

Post by dumberquestions »

stickfigure wrote: post #52
x313 wrote: post #20

For 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 (which is a requisite status symbol for dating or marriage I get that culture is hard to change, but it still seems easier than changing the economics. There are men and women out there who presumably are interested in partnering up; at some point you'd think biology will take over irrespective of which achievements have been unlocked. What's stopping them?

I think we're underestimating how relatively recent these social phenomena are.

Just a few decades ago, the average person had very limited exposure to people outside of their immediate town (outside of celebrities and public figures), which really grounds your standards and expectations of other people. Spend 5 minutes in any social media or dating app today and average people around you will start to look severely below average.

There was also stronger cultural pressure to settle down by a certain age, which again, forces you to be more realistic with your options. The tldr is that Our Paleolithic biology has only so much capacity to adapt to today’s rapidly changing culture and environment.

Re: After Losses, Retail Investors Flock to 3x Leverage as 2x Product Are Restricted

#114

Post by xboxnolifes »

xtiansimon wrote: post #103
xboxnolifes wrote: post #80

Earlier quoted context omitted.

You think status signaling isn't part of biology? That it just happened to independently appear in every human culture and many animals that we are aware of?

> “…status signaling isn't part of biology?” It’s just a short-cut. The most ostentatious courtships of bird species are found in populations without significant predators. Evolution has granted this as advantage, because they don’t need to screech and squawk and hide from predators. Take the Birds-of-paradise from New Guinea as the archetype.

I will take the birds of paradise as the extreme, single example of signaling that it is.

Of course signaling is a short cut. You cant transmit your entire lifes experiences to another people in an instant. You signal and read signals.

Re: After Losses, Retail Investors Flock to 3x Leverage as 2x Product Are Restricted

#115

Post by phyzix5761 »

kilburn wrote: post #112
phyzix5761 wrote: post #104

Earlier quoted context omitted.

If you invest only $200 a month in the S&P 500 from the age of 18 to 65 you'll end up retiring a multi-millionaire. It doesn't take a lot but people are either unaware of how it works or not disciplined enough to put aside $200 a month. Considering that on average Americans are spending $150+ a month on subscription services and $300+ eating out there's plenty of room in the budget for investing $200 a month.

There's very few people in the world that can maintain 47 years of uninterrupted discipline. Most people hit one or a number of: - A significant health issue that also drains them economically - A broken marriage that cuts their savings in half (or less) - A low point in their life where saving for retirement just doesn't make sense in their heads anymore because they feel they'd rather die tomorrow. - A streak of ba…

$200 per month is the minimum to retire with $2 million+. But you can always put more in as your financial situation improves (like getting a raise). You can also make wiser decisions like not getting a $770 a month car payment (yes, that's the current average new car payment in the US).

I work with clients of all financial levels and almost all of them have upwards of $600 a month to put toward retirement/investments once they get on a proper budget and develop the discipline to stick to it.

Yes, emergencies happen but not as often as you'd think and most incidents are manageable, especially if you plan for them. Saving ahead of time for car maintenance or AC replacement, having a bucket for medical expenses or family, getting a prenuptial agreement, etc.

I've been a financial coach for over 20 years and almost all my clients who have reached retirement age have done so as millionaires using this exact method.

Re: After Losses, Retail Investors Flock to 3x Leverage as 2x Product Are Restricted

#116

Post by inigyou »

eudamoniac wrote: post #107
inigyou wrote: post #96

Earlier quoted context omitted.

This is civilization-level apoptosis. The civilization detects that it is broken and makes room for a properly functioning one to take over.

I'd say it's more citizen-level apoptosis. These women are the ones exiting the gene pool, not the whole civilization. But also 4B is an outsized meme especially in the west. It's like furries. We all know about them, but they are not typical people who you can draw conclusions about the civilization from.

The women aren't the ones detecting they have something wrong with them. They are detecting there is something wrong with the next level up, and shutting down that whole thing. Like an apoptosis gene triggered by excessive misfolded proteins.

Re: After Losses, Retail Investors Flock to 3x Leverage as 2x Product Are Restricted

#117

Post by eudamoniac »

inigyou wrote: post #116
eudamoniac wrote: post #107

Earlier quoted context omitted.

I'd say it's more citizen-level apoptosis. These women are the ones exiting the gene pool, not the whole civilization. But also 4B is an outsized meme especially in the west. It's like furries. We all know about them, but they are not typical people who you can draw conclusions about the civilization from.

The women aren't the ones detecting they have something wrong with them. They are detecting there is something wrong with the next level up, and shutting down that whole thing. Like an apoptosis gene triggered by excessive misfolded proteins.

But in reality they aren't "shutting down that whole thing", they are shutting down their personal lineage and not much else. The women might not be conscious of something wrong with themselves, but if they were cells in a body, their behavior would not indicate the body is sick, only that they are.

Re: After Losses, Retail Investors Flock to 3x Leverage as 2x Product Are Restricted

#118

Post by inigyou »

eudamoniac wrote: post #117
inigyou wrote: post #116

Earlier quoted context omitted.

The women aren't the ones detecting they have something wrong with them. They are detecting there is something wrong with the next level up, and shutting down that whole thing. Like an apoptosis gene triggered by excessive misfolded proteins.

But in reality they aren't "shutting down that whole thing", they are shutting down their personal lineage and not much else. The women might not be conscious of something wrong with themselves, but if they were cells in a body, their behavior would not indicate the body is sick, only that they are.

Current fertility rate in South Korea is 1.09, about half of replacement rate.

It's not just a small number of women.

When the misfolded protein response triggers cell death, the proteins that activate the response are not, themselves, misfolded. https://en.wikipedia.org/wiki/Unfolded_protein_response

Re: After Losses, Retail Investors Flock to 3x Leverage as 2x Product Are Restricted

#119

Post by thrance »

dozerly wrote: post #68
kelseyfrog wrote: post #44

Earlier quoted context omitted.

We live in a capitalist society, not a labor-oriented society. The way to make big money is through capital - ie: purchasing property and then selling it for (hopefully) profit. Laboring in a capitalist economy is a loser's strategy because your capital is you body's ability to produce value and that has a maximum physical limit. Why participate in an economy using a strategy that has a natural upper bound? It makes…

This is the logical end conclusion, but in reality, we live in a middle ground where plenty of people have and will live in a society where they can sell their labor for a perfectly content life.

This is becoming less and less true by the day. Salaries are dwindling while the stock market is roaring, and it's already the case that speculation brings more income in this country than work.

It's not sustainable, capitalist societies always degenerate into a society of owners who get the majority of the wealth while workers get scraps. This is what's to blame for the social unrest the West is experimenting.

Re: After Losses, Retail Investors Flock to 3x Leverage as 2x Product Are Restricted

#120

Post by mock-possum »

pas wrote: post #90
mock-possum wrote: post #86

Earlier quoted context omitted.

What’s ‘4B’?

https://en.wikipedia.org/wiki/4B_movement

> 4B or "Four Nos" is a South Korean radical feminist[1] movement whose proponents do not date men, marry men, have sex with men, or have children with men.

huh... is that really feminism? or just homosexuality / asexuality?

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