Signs of financial stress. The effects of higher interest rates have a 6 to 12 month lag period before showing up in the general economy. It appears we’re seeing those related issues now. A Canadian real estate lender has recently halted redemptions on its fund. This means investors can’t get their money out which is a pretty big… Read More »
It wasn’t a good month for options trading. 😅 I’m basically flat for the entire month. I was doing okay for the most part. But then I shorted a put spread on Meta stock before earnings and unfortunately they disappointed investors so much the stock fell 24% the next day which really hurt my P&L. 🙁 The… Read More »
Yes, it still makes sense to use leverage today. Let me explain… 🙂 Leverage in a higher interest rate environment My margin interest rate used to be just 1.8% last year. Borrowing money at this low rate to buy stocks was a no brainer since the stock market returns on average way more than that. However, today my… Read More »
Same pay for less work Over the last couple of years an interesting trend has emerged in the job market. Instead of working the typical 40 hours a week, some jobs have switched to a 32 hour work week. Employees only come to work 4 days a week, so it’s pretty much a long weekend, every weekend. The… Read More »
Paving the way for better future returns. The solution to a stock market correction (10% drop) is often a bear market (20% drop.) It sounds odd. If investors are already upset with a 10% decline of their investments, how would losing another 10% help? But it’s all about the time horizon. historically bear market years have been followed… Read More »
September was quite the roller coaster ride for options income. One week I was up $15,000 and a couple of weeks later I was in negative territory. It’s amazing how fast options can sway into profit or loss. 😅 I’ve been experimenting with some new strategies recently so any temporary loss will be a lesson for me, lol.… Read More »