*Investors Blog*

It’s a sophisticated technique that requires a great deal of care. Leverage works both ways. It can wipe you out quickly. So, for someone who is carefully investing using it, and fully engaged, perhaps.

A good friend, a retired Marine, trades futures and options. Every day. Every day he gets up at 05:00, reads the WSJ, watches all the financial news channels, and puts his orders in before the market open, then goes fishing (the fishing part is on most days, not all).

He does well. He no longer needs to work.

But when you look at the hours he puts into the effort, it is nearly a full time job.

For him, sure, trade on margin, he is a full time investor.

But for the other 99% of us? We don't have the time in our already busy lives to pay close enough attention.


I corrected your post for ya.
 
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I hate technology stocks, more so in my retirement years ... but Meta is looking good to me. Can't get it out of my mind... but I hate technology stocks in the preserve capital stage of my life. Zuckerberg making their investors nervous but looks like a nice buy in time .. but I hate technology stocks at this stage of my life in case I didnt make that clear:unsure:
 
The only time I could see margin making sense for an individual is if they really want to buy something short term but don't want to sell something else because it would cause a tax event.

Margin is south of 12% for retail - I just looked it up. Meaning you have to make a lot more than that to make it worth the risk. Also the risk free gain on T-bills right now is 5.3%. so your now at 17.3% as your minimum benchmark. If you know of a guaranteed 20% plus gain annually then you likely should just sell something else and buy it - and then let me know :)

Now banks can borrow at the fed window at 5.3%, so leverage makes a lot more sense for them.
 
I hate technology stocks, more so in my retirement years ... but Meta is looking good to me. Can't get it out of my mind... but I hate technology stocks in the preserve capital stage of my life. Zuckerberg making their investors nervous but looks like a nice buy in time .. but I hate technology stocks at this stage of my life in case I didnt make that clear:unsure:
I think I would rather own APPL with a P/E of 26 than Meta with a P/E of 25.

Just pulling your chain :ROFLMAO:

They both look good on paper if you want to be in that space. I personally would use technicals to find my entry point.
 
I hate technology stocks, more so in my retirement years ... but Meta is looking good to me. Can't get it out of my mind... but I hate technology stocks in the preserve capital stage of my life. Zuckerberg making their investors nervous but looks like a nice buy in time .. but I hate technology stocks at this stage of my life in case I didnt make that clear:unsure:
How do you really feel, @alarmguy ? Tech is a roller coaster, but look at the most valuable companies in the world. Dominated by tech.
Here's my old company; I got in in the later 1980's and got my options/grants in the 1990's.
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Its an interesting article - but its predicated on income rising by 4% while inflation has been 5% (paraphrasing) over the past 50 years.

However no two people's inflation rates are the same.

For example, if you bought your home years ago, refinanced it a couple times during that period when rates were low, didn't have to pay for college in the last 20 or so years, invested in a 401K or other risk assets, and your employer covered your health care, your likely way ahead of the game.

If you have been renting during that time, had no or poor health insurance, and were trying to improve and educate yourself - then life has pretty much sucked.

And all things in between.

This is why you see such a divide on how people feel based both on age and also tax bracket. If your older and own risk assets, there has never been a better time to be alive. If your poor and / or just trying to get started, your hosed.

Won't end well.
 

Great article.
This constant cycle of bailouts, quantitative easing, interest rate manipulation, and money printing negatively affects the ordinary family and dramatically helps financial institutions and passive investors.


No doubt the folks with money are doing well and others are not.
 
How do you really feel, @alarmguy ? Tech is a roller coaster, but look at the most valuable companies in the world. Dominated by tech.
Here's my old company; I got in in the later 1980's and got my options/grants in the 1990's.
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Agree, but there is also a massive amount of technology companies that went under and failed.
It’s all about risk reward. The greater the reward the more the risk.

But it’s not just technology companies. New businesses are born every day at the ground floor stock price. For every successful one there’s a number of failed ones.

Will LRC match Walmart one day?
Only time will tell, but in the retail business think of all the other retail stores that went out of business from the time, Walmart went public to today.

LRC is up 41,000% Walmart is up 286,000% if you got it at the ground floor, which includes stock splits.
Between both companies absolutely fantastic return but what about the ones that didn’t do that?

No question about it from the 1990s on technology was the way to go. I wonder if something will replace it? It’s hard to imagine something ever could.
Yeah, I have been around since the first Commodore 64 computer came out with a cassette drive. I have seen many technology companies stock shoot up to the moon and eventually the company take a nose dive and cease to exist. So maybe I’ve seen too many people burned which is a disadvantage for me

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I agree, other than you will be 2 months too late - IMHO.

Crashing in what sense though? Stocks? Bonds? All risk assets? USD?

Major slowdown in economy, stocks fall, unemployment up, and foreclosures are allowed to finally happen.

Interesting to see what happens in 2025 with so many broke Americans and debt bubbles popping.

Commercial real estate in big trouble and can't be ignored.
 
Major slowdown in economy, stocks fall, unemployment up, and foreclosures are allowed to finally happen.

Interesting to see what happens in 2025 with so many broke Americans and debt bubbles popping.

Commercial real estate in big trouble and can't be ignored.

Likely going to see interest down to zero again.

The 2020 shadow bank bailouts will likely continue causing problems for the rest of this decade.

Should have bit the bullet all the way back in 2018 but Fed kept pumping the flooded car.
 
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