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

Discussion in 'Economics' started by farmerjohn1324, Jan 4, 2020.

  1. Nobert

    Nobert

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

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

    - as an answer/advice.


    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.. :rolleyes:

    Waiting for the outcomes, like for some Blade Runner remake.
     
    Last edited: Jan 4, 2020
    #21     Jan 4, 2020
  2. #22     Jan 4, 2020
    Nobert likes this.
  3. 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.
     
    #23     Jan 4, 2020
  4. dozu888

    dozu888

    stop asking questions. The Fed is doing a great job.
     
    #24     Jan 4, 2020
  5. Cuddles

    Cuddles

    might be time to start looking at REIT etfs
     
    #25     Jan 4, 2020
    nooby_mcnoob likes this.
  6. Overnight

    Overnight

    Uh huh.

     
    #26     Jan 4, 2020
  7. dozu888

    dozu888

    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.
     
    #27     Jan 5, 2020
    nooby_mcnoob likes this.
  8. dozu888

    dozu888

    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.
     
    #28     Jan 5, 2020
  9. Overnight

    Overnight

    Uh huh.
     
    #29     Jan 5, 2020
  10. Cuddles

    Cuddles

    that's gonna be a hard pass.
     
    #30     Jan 5, 2020