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DonnieT

DonnieT
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  • A Refined All-Long Strategy III [View article]
    Couldn't we set up a reverse collar on the VIX to gain the volatility hedge that we are looking for but at a much lower cost? A JAN15 reverse collar with the $14 call and $17 put can be had for no cost.
    Nov 11, 2014. 01:47 AM | 2 Likes Like |Link to Comment
  • A Refined All-Long Strategy III [View article]
    Cliff,

    Do you think there would a cheaper way to add the volatility ETF exposure through LEAP calls? I'm not yet good enough at modeling to test this myself.

    Donnie
    Nov 5, 2014. 02:27 AM | Likes Like |Link to Comment
  • Ideas For An Ultra-Low Volatility Index Part IV [View article]
    Cliff,

    Thanks for the correction. I was looking at your SPY/TMF return.

    How is the share availability? Is it often that your shorts are called back? IB seems to have great availability but the fees can eat you alive. Have you successfully borrowed a heavily shorted stock?

    Thanks,

    Donnie
    Nov 1, 2014. 06:12 PM | Likes Like |Link to Comment
  • Ideas For An Ultra-Low Volatility Index Part IV [View article]
    Cliff,

    For your 3rd portfolio I get:

    Short SH(80%) - short TMV(20%): Total return = 71.6%, CAGR = 10.2%, Max DD = 8.08% without rebalancing.

    It's amazing that monthly rebalancing means a difference in total return of nearly 90%. I'm not a subscriber so I can't see it on my end.

    Have you figured in the cost of borrowing SH and TMV? IB charges me 2.125% for TMV and 1.3% for SH.
    Nov 1, 2014. 04:40 PM | Likes Like |Link to Comment
  • Ideas For An Ultra-Low Volatility Index Part IV [View article]
    Do you think that a modification of this strategy involving rolling deep in the money long calls on each would better protect against a rising rate bear market or any other period where stocks and bonds are positively correlated on the way down by risking less capital?
    Oct 31, 2014. 06:00 PM | Likes Like |Link to Comment
  • Why Buying A House Is A Terrible Investment [View article]
    In the states we have recourse and non-recourse states. In a recourse state the bank can sue you for walking away. Many times they will not pursue this right though. Mainly a borrower's credit simply gets trashed.

    The leverage of a mortgage is much less risky than leverage in the market. For one thing, the bank takes on much more of the risk of leverage than the borrower.
    Aug 17, 2014. 01:05 PM | 1 Like Like |Link to Comment
  • Why Buying A House Is A Terrible Investment [View article]
    What would a married couple pay in taxes when they sell their primary residence for a $500k profit? It seems that you too are leaving quite a bit out of this return calculation.

    Now, imagine buying a property as a rental, renovating, and later turning it into your primary residence.

    But, I guess you could just pick one dividend paying stock and hope for the best....
    Jun 17, 2014. 07:55 PM | Likes Like |Link to Comment
  • Why Buying A House Is A Terrible Investment [View article]
    Even when your appreciation is levered 5 to 1?
    Jun 16, 2014. 11:29 PM | Likes Like |Link to Comment
  • Why Buying A House Is A Terrible Investment [View article]
    So now we are comparing the foresight of choosing one stock that will outperform over the next 35 years vs owning a home? How about a little risk weighted return here, geez.
    Jun 16, 2014. 11:25 PM | 1 Like Like |Link to Comment
  • Why Buying A House Is A Terrible Investment [View article]
    Good question. On a similar note would you consider his return on appreciation 3% or 15% since he is levered 5 to 1?
    Jun 16, 2014. 11:16 PM | 1 Like Like |Link to Comment
  • Why Buying A House Is A Terrible Investment [View article]
    This is an extremely weak article. How can you write an article about home ownership as an investment without mentioning leverage?
    Jun 15, 2014. 10:53 PM | 6 Likes Like |Link to Comment
  • UPRO And Leveraged ETFs Are Built For Active Management [View instapost]
    There must be a nice way to hold UPRO while hedging against these big downturns. How about buying SPY puts or spx puts? I'm working with a self directed retirement fund so my options are limited. That cheap leverage is hard to pass up.
    Sep 9, 2013. 03:30 PM | Likes Like |Link to Comment
  • ETFs Vs. Mutual Funds: A Surprising Analysis [View article]
    I see that VOO barely outperforms VFINX. I suppose that is reason enough for me to choose the ETF but I also value option volume so I may even choose SPY. I believe that option availability should be mentioned when valuing each product. Thanks for a great article.
    May 6, 2013. 11:33 PM | Likes Like |Link to Comment
  • A Bullish Gold Trade That Is Highly Likely To Work Over The Long Term (If It Does Not Work Over The Short Term) [View article]
    What is your Sharpe ratio with this trade? It seems very high risk to me. You said this was a long term trade but it seems that you adjust your position every week or sooner. I see that it's worked in the short term but I'm not convinced that this is anything close to a good idea with borrowing costs near 10%. Thanks.
    May 4, 2013. 07:52 PM | Likes Like |Link to Comment
  • A Bullish Gold Trade That Is Highly Likely To Work Over The Long Term (If It Does Not Work Over The Short Term) [View article]
    I've given mine. Yours please? ;-)
    Apr 21, 2013. 09:28 PM | Likes Like |Link to Comment
COMMENTS STATS
18 Comments
11 Likes