What's your personal investment strategy?

[Schopenhauer]

@pizza1995

@Sweep_the_Leg

My entire portfolio is in double-levered (long) ETFs.

what do you mean to double-leverage? you’ve borrowed twice as much as the cost of the ETF? how do you insist on paying this back and how have you taken out a loan to finance this?

The ETF uses the assets they have, to borrow using the assets as collateral. As long as the stock doesn’t drop in value by 50%, they can pay back what they borrowed.

It’s a little bit more complicated in practice, but not by a whole bunch.

[Sweep_the_Leg]

@Schopenhauer

@pizza1995

@Sweep_the_Leg

My entire portfolio is in double-levered (long) ETFs.

what do you mean to double-leverage? you’ve borrowed twice as much as the cost of the ETF? how do you insist on paying this back and how have you taken out a loan to finance this?

The ETF uses the assets they have, to borrow using the assets as collateral. As long as the stock doesn’t drop in value by 50%, they can pay back what they borrowed.

It’s a little bit more complicated in practice, but not by a whole bunch.

They generally use derivatives.

[rawraw]

Yeah don’t buy the double leverage etfs on margin ha