I’m 30. I want my cash to be stable and available because I’m planning on buying another property in 3-5 years. I also don’t want an unexpected market downturn to delay me, so if it’s held as “cash” I’ll be ok. The returns won’t be terrible if the interest rates keep going higher and I lock in a high rate.
They aren’t bad, just complicated. Most investors don’t understand the implicit costs associated with holding them. Specifically volatility drag but other things as well.
If you’re always buying all the things, you’ll sooner or later left with no cash. And I’ll be your only friend on bid once when you start selling all the things.
My personal investment strategy is to pay off debt and save a decent amount - at least $1000. From here on it’s simple to set up an automated schedule to invest in a Roth IRA (stocks, precious metals, and other alternative assets) or 401k (if you have an employer). I would then invest the rest of my money into more businesses, and the rest into real estate.
I buy very few things, until volatility gets high and people are desperate to sell. That being said I have missed out on a lot of this 10 year bull market for sure.
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?
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?