Is the Fed artificially keeping the inflation rate near 2%?

[Nobert]

over thinking it... all you need to do is buy buy buy.

I have nothing against dozu888, but you might end up with the same ,,reputation", ( ... )

if you keep repeating ,,overthinking+buy" in multiple treads,

- as an answer/advice.

https://www.fool.com/investing/2017/11/19/wall-streets-hottest-loan-product-borrowing-agains.aspx

Could be the fuel for accelerating the next crash. Maybe it isn't index funds like Big Short guy said.

without finishing the article, they borrow $0.5 for $1 owned in stock, thing goes down in value 50% ~70%, and not only that the person has nothing left, minus what he owns, he may remain in further debt.


So far MS had 40 bils 3 years ago, data necesery for todays size, and every major bank as well.

Then student loans, Illiquid ETFs and same students with their reserve savings in Robinhood, ect.

...oh man..

Waiting for the outcomes, like for some Blade Runner remake.

 

[nooby_mcnoob]

https://www.fool.com/investing/2017/11/19/wall-streets-hottest-loan-product-borrowing-agains.aspx

Could be the fuel for accelerating the next crash. Maybe it isn't index funds like Big Short guy said.

 

[nooby_mcnoob]

https://www.fool.com/investing/2017/11/19/wall-streets-hottest-loan-product-borrowing-agains.aspx

Could be the fuel for accelerating the next crash. Maybe it isn't index funds like Big Short guy said.

Although it looks like the cost of securing a purely SPY-based portfolio against a drop to $280 is about 3% over a year.

So borrow up to 80% at 4%, protect portfolio at 3% for a total cost of 7%. Unlikely to get liquidated probably. And if you do get liquidated to pay off the loan, sh1t is hitting the fan so hopefully you have invested the 80% in a recession-proof business.

I'm sure the really rich people have sorted this out. They probably never pay taxes on their gains.

 

[dozu888]

stop asking questions. The Fed is doing a great job.

 

[Cuddles]

might be time to start looking at REIT etfs

 

[Overnight]

stop asking questions. The Fed is doing a great job.

Uh huh.

 

[dozu888]

Uh huh.

what... you are living a good life aren't you? nothing to worry about... all the time in the world to waste keystrokes on the internet? isn't it all great.

so, thank the Fed.

 

[dozu888]

might be time to start looking at REIT etfs

no..

right now, you need to invest in the 'riskiest' asset you can find.

The entire world is dying for yield and afraid of risk right now. which means anything that produces a yield has been bid up already.

you want to buy the stuff that does not produce a yield (or as little as possible), and also is perceived as the most risky.

that's the asset that is the most miss-priced, to the cheap side.

 

[Overnight]

what... you are living a good life aren't you? nothing to worry about... all the time in the world to waste keystrokes on the internet? isn't it all great.

so, thank the Fed.

Uh huh.

 

[Cuddles]

no..

right now, you need to invest in the 'riskiest' asset you can find.

The entire world is dying for yield and afraid of risk right now. which means anything that produces a yield has been bid up already.

you want to buy the stuff that does not produce a yield (or as little as possible), and also is perceived as the most risky.

that's the asset that is the most miss-priced, to the cheap side.

that's gonna be a hard pass.