• Leverage: Fast Fortune of Failure

  • Apr 28 2025
  • Duración: 22 m
  • Podcast

Leverage: Fast Fortune of Failure

  • Resumen

  • Don and Tom dive into the seductive but dangerous world of leverage, starting with real estate and quickly moving into the even riskier territory of leveraged ETFs. They explain how leverage magnifies both gains and devastating losses, using real-world examples like the Direction 3X Treasury Bull and Bear funds, which either crushed or annihilated investor money. They caution listeners that these “extra touchy” funds are pure speculation, not investing, and explain why most people should stay far away. The episode wraps with smart listener questions on direct indexing, Roth rollovers, and the hidden risks in trying to beat the market on your own. 0:04 How leverage props up real estate and investing myths1:32 The dark side: Leveraged funds and massive losses2:49 Triple leverage dangers: 90% losses vs. 266% gains5:38 Long-term performance: both leveraged bulls and bears lose7:52 Even treasuries show wild volatility with leverage9:57 Why leveraged funds are pure speculation, not investing11:44 Risk explained through standard deviation comparisons14:16 Listener question: Direct indexing vs. S&P 500 returns17:44 Listener question: Roth 401k rollover to Roth IRA tips Learn more about your ad choices. Visit megaphone.fm/adchoices
    Más Menos
adbl_web_global_use_to_activate_webcro768_stickypopup

Lo que los oyentes dicen sobre Leverage: Fast Fortune of Failure

Calificaciones medias de los clientes

Reseñas - Selecciona las pestañas a continuación para cambiar el origen de las reseñas.