UnThreaded | Threaded | Whole Thread (318) | Ignore Thread Prev Thread | Prev | Next | Next Thread
Author: Dwdonhoff Big gold star, 5000 posts Top Favorite Fools Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 75539  
Subject: Re: Hi gang... wow!!! Date: 5/28/2013 7:46 PM
Post New | Post Reply | Reply Later | Create Poll . Report this Post | Recommend it!
Recommendations: 2
Hi Sykesix,

the majority of people here don't want to believe things, we want to know things.
Good! Along with your post, at least 5 people (at present) agree.

We started out with Ray conceding that he had no competitive way of getting the same results with the same safety at a lower price than an IUL.

I conceded that when an unlimited loss tolerance is acceptable, I have many other ways to potentially outperform an IUL... but unlimited loss tolerance isn't a characteristic of foundational retirement accounts.

We agreed to explore how a naked S&P hold might compare to a hedged 0/12 strategy on the S&P, with the advance stipulations of our mutual concessions... and we *can* still do that further, if there's actually interest. It doesn't appear that there actually is, though (at least not judging by recs, and the lack of inquiries in regards to the non-loss strategies.)

It appears to me that a massive amount of electrons appear to have been contorted into a contest that never was.

I see some massive gaping holes in the acceptance of unlimited loss risks... The greatest 10, 20, 30 bagger opportunities occur when you have not lost any cash, and everyone else has been decimated and are waiting/praying for "the markets to come back."

The greatest risks of collapse (foreclosure, bankruptcy, etc.) come at the exact same time.
(Not ironically, the greatest opportunities usually come *FROM* bailing out foreclosures, bankruptcies & similar states of desperation!)

Going naked in a market with frequent and unpredictable 30-50% drawdowns might be fine for the top 10-20% of a person's risk pyramid distribution... but not the foundation that everything is built upon, at risk of complete collapse.

What do you want to know that you suspect you do not?
Where is there an interest for learning here?

Dave
Post New | Post Reply | Reply Later | Create Poll . Report this Post | Recommend it!
Print the post  
UnThreaded | Threaded | Whole Thread (318) | Ignore Thread Prev Thread | Prev | Next | Next Thread

Announcements

The Retire Early Home Page
Discussion on accelerating retirement day.
Post of the Day:
Value Hounds

Kate Spade's Wild Ride
What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Community Home
Speak Your Mind, Start Your Blog, Rate Your Stocks

Community Team Fools - who are those TMF's?
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and "#1 Media Company to Work For" (BusinessInsider 2011)! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.
Advertisement