Re:Economic Pessimism Growing in U.S.
by fdgsdfogijq on Tuesday May 31, 2022 @03:10PM
(#31573580)
Whats new is how drastic it is. Its not a joke, you need to invest with leverage or all the time you spend working will be for nothing. And you need big leverage.
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Re:Economic Pessimism Growing in U.S.
by WalterSear on Tuesday May 31, 2022 @03:14PM
(#31573632)
Which works until it doesn't, unless you are part of George Carlin's big club that we all aren't in.
Could you explain what exactly you mean by "leverage" in this context? Does this just mean take out loans? I feel like interest payments really screw you on most loans.
Something to this effect. Use borrowed money to buy more assets.
In reality, this is terrible advice if you can't service the interest. It's a scheme that worked in a low rate environment, but likely will no longer be viable.
Re:Economic Pessimism Growing in U.S.
by adamsmith143 on Tuesday May 31, 2022 @04:09PM
(#31574306)
Some stock brokerages literally let you trade with a multiple of the actual cash you have deposited. E.g. you have $10,000 in a brokerage account with Fidelity and you apply for margin and they let you trade with $100,000 that you can then invest as you see fit. You multiply your possible returns but also your possible losses. If your losses become large enough you can get Margin Called and be forced to repay all of your losses at once. So if you lost all the 100K they gave you, you are now on the hook for those losses.