Time to go NAKED 25% Stocks?

Discussion of the Stock portion of the Permanent Portfolio

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modeljc
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Time to go NAKED 25% Stocks?

Postby modeljc » Tue Sep 26, 2017 4:35 pm

Anybody out there that wants to make a market CALL?

https://www.advisorperspectives.com/dsh ... the-market
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ochotona
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Re: Time to go NAKED 25% Stocks?

Postby ochotona » Tue Sep 26, 2017 10:12 pm

Only after there is a death cross, and the 1-year return on the SP500 is negative.
boglerdude
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Re: Time to go NAKED 25% Stocks?

Postby boglerdude » Wed Sep 27, 2017 9:47 pm

So if I want a loan to buy stocks, where is the money I'm borrowing coming from
technovelist
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Re: Time to go NAKED 25% Stocks?

Postby technovelist » Fri Sep 29, 2017 2:03 pm

boglerdude wrote:So if I want a loan to buy stocks, where is the money I'm borrowing coming from


I believe you are referring to margin loans. In general, the money for a margin loan comes from the broker. E.g., if I take out a margin loan at Fidelity, it is Fidelity who is lending me the money.

Now where they get it from is another question. Maybe you should ask your broker about that.
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stone
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Re: Time to go NAKED 25% Stocks?

Postby stone » Sun Oct 01, 2017 8:56 am

boglerdude wrote:So if I want a loan to buy stocks, where is the money I'm borrowing coming from

Are you referring to the general "loans create deposits" process whereby credit money in general is created by bank lending as described in http://www.bankofengland.co.uk/publicat ... 14q102.pdf
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Re: Time to go NAKED 25% Stocks?

Postby boglerdude » Sun Oct 01, 2017 7:46 pm

yeah...so a broker loans out cash for someone to buy stocks...

the broker gets the cash from a bank? so it's ultimately consumer deposits that disappear if the margin loans default?
technovelist
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Re: Time to go NAKED 25% Stocks?

Postby technovelist » Sun Oct 01, 2017 8:13 pm

boglerdude wrote:yeah...so a broker loans out cash for someone to buy stocks...

the broker gets the cash from a bank? so it's ultimately consumer deposits that disappear if the margin loans default?


No. FDIC will cover those deposits.

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