Re:Ask HN: How to prosper under negative interest rates?
by brobinson on Tuesday March 31, 2020 @02:36PM
(#22740870)
Being long-only is great when everything is going up.
As for me, I like to hedge out the market and sector movements by being long/short (adjusted for beta) within a given sector. I only make money if my long outperforms my short. Trump tweets and other companies' earnings in the sector do not affect my P/L.
Re:Ask HN: How to prosper under negative interest rates?
by Der_Einzige on Tuesday March 31, 2020 @01:18PM
(#22739843)
No - You're wrong and the person you're replying to is right.
Futures are how you multiply your money with relatively low risk. Stocks are how you get 5% returns amortized YOY if you're lucky
Re:Ask HN: How to prosper under negative interest rates?
by oh_sigh on Tuesday March 31, 2020 @01:39PM
(#22740127)
Why is there all this free money sitting in the futures market?
Re:Ask HN: How to prosper under negative interest rates?
by saiya-jin on Tuesday March 31, 2020 @02:31PM
(#22740805)
Yeah I wonder why on earth is any professional trader doing anything else rather than methods described. Those amateurs, right? Money sitting there for free... give me a break.
I don't need to be a finance expert to know when somebody sells a snake oil - things that sound too good to be true most often are.
Re:Ask HN: How to prosper under negative interest rates?
by brobinson on Tuesday March 31, 2020 @02:47PM
(#22741011)
Cost of carry.
Re:Ask HN: How to prosper under negative interest rates?
by SketchySeaBeast on Tuesday March 31, 2020 @03:07PM
(#22741229)
So then would it help to scale it or not?
Buy a house and some stocks in growth sectors.