Tag Archives: margin

What you should know about negative real interest rates

How negative real rates distort everything Normally a mortgage is a liability. And bonds are a low risk, low return asset. However when real interest rates are negative you can throw these conventional concepts out the window. ūüėõ The graph below shows the difference between a government bond yield and inflation (CPI.) The economy experiences negative real rates‚Ķ Read More »

How to Rationally Think about Leverage

Borrow money to make money Today we’ll explore¬†a common¬†question I get asked all the time: What is my thought process behind leverage?¬†The short answer is simple. I want to make high returns without being exposed to high risk. Normally the two go hand-in-hand. But leverage allows me to separate them. For example, a speculative marijuana stock may grow¬†20%‚Ķ Read More »

Interactive Brokers Review – Online Brokerage Platform

Last month I blogged about opening up a new Interactive Brokers account to invest in stocks. I’ve received some reader’s questions since then. So in today’s follow-up post,¬†I’d like to discuss the following topics. ūüôā How to Open an IB Account How to transfer funds¬†between your bank and IB How margin accounts work with IB How to enter‚Ķ Read More »

Recent Purchases, CJR.B and JNJ

Experts worry that¬†the recent interest rate cut in Canada will lure people¬†to¬†rack up even more debt. Bankruptcy trustee Doug Hoyes warns, “the more debt you have, the greater your chances of going bankrupt. It’s simple math.” He¬†predicts bankruptcy numbers will “skyrocket when¬†interest rates rise and people are saddled with ballooning debt payments.” Yikes.¬†That doesn’t sound good. ūüėź Anyway,¬†last‚Ķ Read More »

China’s Stock Market Volatility

You’ve probably heard on the news about the stock market correction in China.¬†Last year, Chinese stocks experienced huge gains and¬†surged more than 140%. Oh my Buddha, that’s insane! ūüėĮ But since June 2015, the market has¬†dropped by almost a third in value. Some people in the media claim this is some sort of catastrophic¬†event comparing it to the‚Ķ Read More »