Are 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"?
It's a USA colony so yes
After Losses, Retail Investors Flock to 3x Leverage as 2x Product Are Restricted
101–110 of 129 posts
Re: After Losses, Retail Investors Flock to 3x Leverage as 2x Product Are Restricted
#102For 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…
They've also driven a noticeable drop in stock prices in the closing minutes that have been used by quant algos to squeeze even more money out of the market as the leverage is a unmanaged algo that was predictable and could be driven up before it had to force trades.
It's not just the gambling of people, but the systematic use of bots to squeeze leveraged vehicles.
Re: After Losses, Retail Investors Flock to 3x Leverage as 2x Product Are Restricted
#103Earlier quoted context omitted.
> 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?
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.
Re: After Losses, Retail Investors Flock to 3x Leverage as 2x Product Are Restricted
#104The 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.
Re: After Losses, Retail Investors Flock to 3x Leverage as 2x Product Are Restricted
#105The 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.
This doesn't make any sense. The population has experienced massive uplift over the last few decades. Their parents weren't going on vacations with the family as kids, they were struggling to put food on the table. Houses are outpacing inflation, but the home ownership rate continues to climb.
Re: After Losses, Retail Investors Flock to 3x Leverage as 2x Product Are Restricted
#106Earlier quoted context omitted.
Disagree on that being the advice in the US. Most basic investment advice (and target-date funds) will use a three-fund portfolio containing US, ex-US, and bonds.
In Europe bonds are mostly out of fashion because they pay very little or have considerable risk of default. At least for retail investors.
You normally add bonds when nearing retirement.
Re: After Losses, Retail Investors Flock to 3x Leverage as 2x Product Are Restricted
#107Earlier quoted context omitted.
https://en.wikipedia.org/wiki/4B_movement
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.
Re: After Losses, Retail Investors Flock to 3x Leverage as 2x Product Are Restricted
#108Earlier 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.
Many people don't have a "rest of their portfolio".
Re: After Losses, Retail Investors Flock to 3x Leverage as 2x Product Are Restricted
#109Earlier 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…
3% less annual returns than the S&P500 over 10 years and the entire fund lifetime. That's a considerable difference.
Yes, diversification results in lower returns than investing in just the best performing asset class.
Re: After Losses, Retail Investors Flock to 3x Leverage as 2x Product Are Restricted
#110Earlier 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…
3% less annual returns than the S&P500 over 10 years and the entire fund lifetime. That's a considerable difference.
That's what happens when you are in a 10+ year bull market. That doesn't mean 100% US equity allocation is a good idea starting now.