Will Burry be correct this time as well? Fund manager Michael Burry is famous for predicting the great financial crisis and shorting real estate before the market crashed in 2008. Well he recently became bearish again on the financial market. From the latest 13F filings Burry disclosed he has bought about $1.6 billion worth of put options for… Read More »
Stocks are going up The commonly accepted definition of a bull market is when the price rises by 20% from its low point. And this past week the S&P 500 shot up to 4,170 points marking a 20% gain from its low back in October 2022. So the bear market is officially over and we are technically in… Read More »
A year of unexpected challenges At the beginning of this year I set out to accomplish 6 goals. In the end I only managed to complete 3 out of 6, lol. Next year I shall lower my expectations. What caught me by surprise was how unique this year has been for the economy and financial markets. Over the… Read More »
Liquid net worth – July through September It seems things have gotten worse in the third quarter of 2022. Stocks continue to fall in general and because I am leveraged my investments are down more than the broad-based market. My liquid net worth dropped by $64,000 and is now back to where it was after Q1 of 2021.… Read More »
Yes, it still makes sense to use leverage today. Let me explain… 🙂 Leverage in a higher interest rate environment My margin interest rate used to be just 1.8% last year. Borrowing money at this low rate to buy stocks was a no brainer since the stock market returns on average way more than that. However, today my… Read More »
Paving the way for better future returns. The solution to a stock market correction (10% drop) is often a bear market (20% drop.) It sounds odd. If investors are already upset with a 10% decline of their investments, how would losing another 10% help? But it’s all about the time horizon. historically bear market years have been followed… Read More »