Investors use margin WAY TOO AGGRESSIVELY. It’s a big mistake. They will pay the price. On the other hand with real estate, you see people all the time putting their 20% down, essentially using leverage to buy the home. As long as they can make the payments, regardless if the market goes down or not, they will be fine. That’s different than buying stocks on margin.
Do you see the potential problems here?
We have been lead to believe that there are organizations watching over the financial system, ensuring the safety and security of our investments. We’ve been told everything will be just fine. Seeing previous examples where banks have been rescued gives people piece of mind and enables them to fall asleep. But you know better, right?
As Most Crowded Trades Turn Sour, Fund Managers Brace for Pain – Bloomberg
Monetary policy decisions
Malibu Real Estate Market Spikes
800,000 people are about to flee New York, California because of taxes
Retail Rents Plunge in Major Manhattan Shopping Districts – WSJ
Subway Plans to Close 500 U.S. Stores, Build Global Reach – Bloomberg
Deutsche Bank Plans to Cut U.S. Jobs by Over 10% – Bloomberg