Dow Down 666 Points

Meaning if you have $1M in stock then borrow $300k.

Don’t encourage Roy321, Jil and me. No margin :slight_smile: No confidence in using margin since the bull is already the longest post-war.

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Too risk-averse :wink:

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I hate margin, except for 2 days fund transfer time.

Reason: Margin is bad at bear market and wrecks the borrower double poor. I have seen Millionaires lost entire net worth during 2001 downturn with margin effect.

Even two days before, I heard a story how margin made a big loss for my friend bringing down 50k to 2k profit when his stock fell crazily.

General advise from financial advisers not to use margin, esp for long term investment perspective.

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You have to do everything with moderation. If you eat 50 bowls of rice in a single day then you’re going to die, but it doesn’t mean eating rice is bad for you.

Financial advisors are there to charge you fees only. There’s nothing they know about that you don’t (or at least I don’t)… :rofl:

Not only financial advisers, many investment books (and lot of references avl in google) advise against margin usage.

They won’t go wrong, esp well established investment books.

In principle, Long term investors avoid margin money except brief 2 day transfer time.

Well, one’s garbage is another’s treasure. I’m done trying to convince people about the benefits of margin here. Do as you please. I laugh all the way to the bank as always… :rofl:

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https://www.investors.com/how-to-invest/investors-corner/common-stock-investing-mistakes-using-margin-at-the-wrong-time/

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Haven’t I already said the same thing with my “rice eating” metaphor? :wink:

I agree with you but ANY leveraged investment can be a debt trap(IF in a sustained bear market), INCLUDING RE(which is highly leveraged). The only difference with RE(as an investment vehicle) vs stocks is RE won’t fall very sharply (because it’s an illiquid investment).

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This is not a part of my vocabulary. If you believe in capitalism then you have to believe in debt. Just do it in moderation that’s all.

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The only stock I’ve sold is BIDU. It was lagging the other BAT stocks badly. I’ll rotate that money into the other two BAT stocks. I keep selling covered calls, and I’ve sold some puts. The higher volatility has really helped the prices of them.

My portfolio hedge is TLT puts.

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I recently got two 0% Credit cards for 1.5 years… there’s my cheap debt :smiley:

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I actually rotated some Bidu into Baba back in 2014 when it IPOed. It was the right move. Bidu remained at the 200-250 range while Baba doubled from its IPO price of 90. However, I’m still holding on to a lot of Bidu for long term appreciation. My Bidu and Baba holdings are about even now. One thing about Bidu is that it has a market cap much smaller than Baba. So there’s definitely room for improvement.

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Even in RE leverage, I am fine with fixed mortgage than ARM.

ARM is best suitable when holding is less than ARM period like flipping or business RE side, but not for ARM refi later esp growing mortgage environment.

In stocks, I stay away from margin, not too greedy to use margin.

The basic idea is stay as strong as possible to keep the investment grow and we must have all options to play whatever way we can grow than being dictated by third party lender.

@sheriff

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Updated list:

@hanera
@manch
@wuqijun
@Roy321
@sheriff
@marcus335
@BA_lurker

Looks like we have lots more buy and hold people than impulsive sellers here… :wink:

I’m not selling or buying because it’s not cheap enough for me. Ping me when it’s down at least another 5,000 points.

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This forum will be a desert if that happens as most of us would be staying at home crying our hearts out. so no one to ping you…

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So people are pretty happy now? No one preparing for the coming Black Monday? :scream: :scream: :scream: