Gyroscopic Investing

Anybody out there that wants to make a market CALL?

https://www.advisorperspectives.com/dsh ... the-market

Only after there is a death cross, and the 1-year return on the SP500 is negative.

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

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.

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

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?

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.