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Alternately one could assert that government suppression who I can choose as an investor based on the fact that the government doesn't like the views of the investor has some pretty serious First Amendment implications. I don't disagree at all that China does and represents a lot of bad things...

I'd have to again push you to think through your and @trader99's logic. The vast majority of real estate in CA, including in the Bay Area where I lived for a decade, is not billionaire real estate. Probably something like 95% of it is sub-2,500 square foot in older (and to my eye not terribly...

It's a bit of a semantics thing. Imagine you have $100,000. You want to buy $100,000 of IBM stock and put down $50,000 as a downpayment on a home. There are a couple of paths to accomplish this, both of which have exactly the same end result. 1. You put $50K in a brokerage account, but $100K...

Funny that CA real estate prices reflect the opposite. If the wealthy were really "fleeing" CA to third world states you'd see their real estate prices rising rapidly while CA prices fell. Either CA is still producing wealth significantly faster than it is fleeing or supply and demand effects...

I don't think anyone considers AZ "the south" any more than SoCal is "the south"! When we refer to "the south" in the U.S. it's generally referring to the losing states states in the civil war.

You can sell a wide SPX box at any broker to get an effective borrow rate lower than IB.

It says they're eligible for it, not that they have precedence for it. They don't, by the way, that would be absurd.

I'm confused, do the homeless low income folks not get Medicaid but illegal migrants do? I mean the headline claims that migrants are "come first" and "Californians don't matter", what exactly do they get "first" and Californians don't get? Given that illegal immigrants pay about $3B in combined...

I think you might be confused as to what the banks did and to whom. It didn't involve pikers and e-minis wouldn't have helped anything for the customers impacted. It was basically brokers front-running large i-banking customers and colluding in violation of anti-trust laws by disclosing large...

Like some of us have told you a number of times, Nadex is a CFTC regulated exchange. It is in no danger of getting "cut off" and you have already been "cut off" as a U.S. citizen from the offshore bucket shop binary shops for years, long before you started trading.

For anyone except those leaving NYC the real estate cost hit is going to hurt a heck of a lot more than the tax hit! It only takes a 4 or 5% pay raise to overcome the difference in tax rate between CA and most other first world states, and for those folks you're looking at opportunities far...

How, exactly, would auto liquidation of customers positions have changed the outcome of MF Global? They universally hurt customers and do nothing to make IB any "safer". Your chances of losing a significant amount of money when IB autoliquidates you on a position that is literally impossible to...

I'll kind of take back my qualitative statement. I think that if you think about what a standard deviation represents it makes sense that excess returns would have to be close to the same for the concept of investing in a diverse portfolio to make sense, but I wouldn't fault you if you called BS...

If you pick 1995-28 I end up with an average of .84 Year Sharpe 1995 4.01 1996 1.48 1997 1.53 1998 1.14 1999 0.89 2000 -0.66 2001 -0.69 2002 -0.9 2003 1.59 2004 0.84 2005 0.16 2006 1.08 2007 0.07 2008 -0.92 2009 0.94 2010 0.81 2011 0.09 2012 1.19 2013 2.82 2014 1.18 2015 0.08 2016 0.86 2017...

And it's been about 1 over the last 25 years, which is what I stated no? Point being this strategy has an identified potential black swan event, per the OPs question and on a risk adjusted basis it's not terribly different than the S&P 500 depending on what time period you pick. Those are direct...

Um, given that Rf is one of three terms in a Sharpe ratio... yes.

Not exactly mind blowing given the straight S&P 500 has had a Sharpe of about 1 over the last 25 years. Sounds like it simply increases risk to increase returns, as one would expect with a leveraged product.

What's the Sharpe ratio? Any time someone focuses on absolute returns and fails to quantify risk adjusted returns you have to question their rigor and knowledge base as best. I think the quote "The main risk is that the S&P 500 and long Treasuries crash together in the same short period of time...

Don't disagree with that at all. I actually work directly with another division of Tesla on a daily basis and you couldn't pay me enough to work there! Which is a shame, because it does lead the @Pekelo's of the world to conflate all electrification with Tesla and then flush it all down the toilet.

I'd come to the same ultimate conclusion as you for a different reason. If your employees have nothing better to do then whine about how the company stops them from using company resources to complain about the company, you hired some pretty self-entitled a-hole employees which doesn't bode well...