Ghost of Igloi wrote:
Investment genius, until your highly levered portfolio goes the other way. Highly levered? Your job, your company stock, your pay, your leveraged equity funds—get this. They all move in the same direction. Up and down.
It’s not working the last ten days.
In terms of pathetic, just go read your posts. And I was foolish enough to take your questions as honesty. Evidently your morals emulate your CEO.
?
I’m highly levered? I have near 30% in bonds. How is that highly levered.
Not sure why you’re so looking forward to failure when all you do is try to spread fear.
As I’ve said multiple times in my other posts, I am fine if market tanks with my high bond holdings. In fact, I will welcome it as I can sell my bonds and buy equity at lower prices. Yea, i sure am highly levered. I sure am levered when I invest 30% of my paycheck where if I happen to lose my job, I can easily find a job good enough to not starve as I live well below my means. So, I think I’m prepared when market craps out again. I know it will happen again, but I’m not like you and stay scared out of the market and hold CDs. All I do is use a simple method called asset allocation.
So, I will celebrate with you when the market ranks again. But I’ll just be a lot more prepared than you. Here’s the thing, let’s say I start with $100 and increase it to $800. Then, there’s a catastrophic drop of of 50%. Highly doubtful bc of my high bond holdings, but let’s just say it does. Then I’m down to $400. For you, you start with $100, then you increase it to $120. Then, you lose nothing during catastrophic drop, you’re still only at $120 compared to my $400. On top of this, my $400 will be in position to gain when the market climbs back up. Your $120 will remain at $120 and miss out on any of the gains. So, either way, you lose. Why anyone takes advice about investing from a person working in their 70s, that is just insane.
I feel you though. I would be grumpy like you too if I have to be working my in 70s. I mean, if you would have been diligently investing into equity for the last 10 years, you could be relaxing and not have to drive to work in your Cayman and having to explain to people why it’s better than 911. I get it.