Author Archives: Liquid Independence
The new face of wealth Move over Elon Musk and Jeff Bezos. There’s a new top dog in down. And his name is Bernard. 🙂 With an estimated net worth of $193 billion, the LVMH chief has been recently crowned by Forbes as the wealthiest person in the world. Bernard Jean Étienne Arnault is a 72 year old… Read More »
How negative real rates distort everything Normally a mortgage is a liability. And bonds are a low risk, low return asset. However when real interest rates are negative you can throw these conventional concepts out the window. The graph below shows the difference between a government bond yield and inflation (CPI.) The economy experiences negative real rates when… Read More »
My second month of trading options In May I received $820 in premiums from trading options. That’s $100 more than what I made in April. Yay. 🙂 Here are some key points from my options trading this month. I sold 10 options – 8 Puts and 2 Calls. I bought 1 option to close my previously sold TD… Read More »
How to handle market volatility When the dot com bubble popped in the early 2000s, a lot of investors dumped their Amazon stock. The share price plunged 95% from its high. 🙁 Stock prices fluctuate a lot in the short term, but over the long run they ultimately reflect the intrinsic value of the underlying company. And that… Read More »
High income and cheap credit Why are real estate prices so high? Isn’t the economy still recovering? Yes. Millions have lost their jobs and many are still looking for work. But recessions don’t affect everyone equally. The number of high income individuals is often underestimated. So in today’s post I’ll explain how people can afford to buy multi-million dollar… Read More »
The US dollar fell last month and probably has further to drop. The US is facing massive stagflation pressures as it deals with rising prices, but no economic growth. This happened before in the 1970s. Here are 3 primary catalysts explaining why it’s happening again today. The US government butchered the pandemic response compared to other parts of the world… Read More »