by Lance Roberts
My articles My offerMy siteAbout meMy videosMy books
Follow on:TwitterSeeking AlphaFacebookAmazon
| Periods of extreme leverage and speculation are not new, and the outcomes have consistently been painful for unprepared investors. The late 1990s dot-com bubble serves as a prime example. Speculative bets on internet stocks drove valuations to extraordinary levels, with investors leveraging margin accounts and options to chase gains. When the bubble burst, the Nasdaq lost nearly 80% of its value, leaving leveraged traders especially vulnerable to devastating losses. Lance and Jonathan discuss these lessons from history on today's show, plus a discussion on asset diversification, and what happens when all assets become correlated, the fallacies of diversification, and overlap risk. Money mistakes made by the young; the best stop-loss tools and strategies; the flaw in comparing portfolio performance to the S&P Index (or any index). 3:17 - Why Sentiment-driven Indexes are Up 14:37 - Lessons from History - What Excessive Leverage Teaches Us 30:25 - The Fallacies of Diversification 44:34 - The Best Stop-loss Tool 52:24 - Comparing Portfolios to S&P Index Hosted by RIA Advisors Chief Investment Strategist Lance Roberts, CIO, w Senior Financial Advisor Jonathan Penn, CFP Produced by Brent Clanton, Executive Producer ------- Articles mentioned in this report: "Leverage And Speculation Are At Extremes" https://realinvestmentadvice.com/resources/blog/leverage-and-speculation-are-at-extremes/ "Extreme Speculation Has Returned" https://realinvestmentadvice.com/resources/blog/extreme-speculation-has-returned/ ------- The latest installment of our new feature, Before the Bell, "Diversification Isn't What You Think" is here: -6Yr5g&list=PLwNgo56zE4RAbkqxgdj-8GOvjZTp9_Zlz&index=1 ------- Our previous show is here: "Extreme Speculation Has Returned" &list=PLVT8LcWPeAugpcGzM8hHyEP11lE87RYPe&index=1&t=2s ------- Get more info & commentary: https://realinvestmentadvice.com/newsletter/ -------- SUBSCRIBE to The Real Investment Show here: http://www.youtube.com/c/TheRealInvestmentShow -------- Visit our Site: https://www.realinvestmentadvice.com Contact Us: 1-855-RIA-PLAN -------- Subscribe to SimpleVisor: https://www.simplevisor.com/register-new -------- Connect with us on social: https://twitter.com/RealInvAdvice https://twitter.com/LanceRoberts https://www.facebook.com/RealInvestmentAdvice/ https://www.linkedin.com/in/realinvestmentadvice/ #MarketLeverage #SpeculationRisks #InvestmentTrends #FinancialWarnings #StockVolatility #StockMarketSpeculation #MarketVolatility #HighRiskInvesting #SpeculativeTrading #FinancialTrends2025 #TrumpAdministration #RegulatoryChanges #InvestingAdvice #Money #InvestingAdvice #Money #Investing |
You Might Also Like
Choosing Future Success: Moving Beyond Past Performance in Fund Investments
2024-12-01
Want to make smart investment decisions? 📈 Consider looking beyond the five star funds! Check out why size matters in fund growth and opportunities. 💰 #InvestingTips #FinancialAdvice
Watch the entire show here: https://cstu.io/81b807
YouTube channel = @ TheRealInvestmentShow
Extreme Speculation Has Returned
2024-11-30
Inside This Week’s Bull Bear Report A Note Of Thanksgiving While belated, we sincerely hope you had a happy and fulfilling Thanksgiving holiday. In the words of Henry David Thoreau, “I am grateful for what I am and have. My Thanksgiving is perpetual.” All of us at RIA Advisors and Real Investment Advice are grateful …
2025 Thanksgiving Break
2024-11-26
Yep, we’re out of the studio for the Thanksgiving break, returning on Monday, December 2, 2024 for more of your favorite live financial talk programming.
From our gang to yours, have a safe and happy Thanksgiving!
➢ Listen daily on Apple Podcasts:
https://podcasts.apple.com/us/podcast/the-real-investment-show-podcast/id1271435757
➢ Watch Live Mon-Fri, 6a-7a Central on our Youtube Channel:
www.youtube.com/c/TheRealInvestmentShow
➢ Upcoming personal finance free online events:
https://riaadvisors.com/events/
➢ Sign up for the Newsletter:
https://realinvestmentadvice.com/newsletter/
➢ RIA SimpleVisor: Analysis, Research, Portfolio Models, and More.
https://www.simplevisor.com/register-new
Visit our Site: www.realinvestmentadvice.com
Contact Us: 1-855-RIA-PLAN
Target And Walmart: Same Business But Different Trends
2024-11-21
Yesterday’s Commentary shared Walmart’s outstanding earnings report and reviewed its surging share price from a technical basis. Despite being a head-to-head competitor of Walmart, Target is heading down a completely different path. Walmart beat EPS and revenue expectations easily, while Target was short. Target reported EPS of $1.85, well below estimates of $2.30. Unlike Walmart, …
5X5 Inflation Expectations: A New Benchmark To Follow
2024-11-18
At the last FOMC meeting, Jerome Powell was asked if they were concerned that inflation expectations are “de-anchoring, or put another way, are anchoring at a slightly higher level?” His answer specifically referenced the 5×5 forward inflation expected rate. He could have used many data points to answer the question. However, the fact that he …
Election Outcome Presents Opportunity For Investors
2024-10-04
As the November 2024 election draws near, the election outcome will profoundly affect the financial markets. Whether Donald Trump or Kamala Harris wins the presidency, each administration will bring distinct policies creating investment opportunities and potential risks for investors.
Tax Cuts – An Examination Of The 2017 TCJA Impact
2024-09-27
An analysis of Presidential Candidate Trump’s policy proposals recently suggests that tax cuts will increase the deficit. While the raw analysis is correct, as it subtracts the potential for reduced tax collections from the tariff revenue, it ignores the impact on economic growth.
There is much rhetoric about the impact of tax cuts, mostly centering around “only benefitting the rich.” While it may seem that “the rich” are the ones who benefit, there are two important points to consider. First, “the rich” already pay most of the taxes. The Tax Foundation shows that the top 10% of income earners paid 59.1% of taxes. The top 25% of income earners comprised nearly 70% of all tax revenue, with the top 50% paying 97% of all taxes.
Of course, such begs the question of those
7-18-24 Irrational Exuberance Then And Now
2024-07-18
Walking the tightrope between irrational exuberance and reality is complex. Therefore, appreciate the market for what it is. This bull market has no known expiration date. Active management, using technical and fundamental analysis along with macroeconomic forecasting, is crucial to managing the potential risks and rewards that lie ahead. What if we are experiencing rational exuberance and AI is an economic game changer? What if current valuations aptly reflect enhanced economic growth? Such profits and wealth formation may allow us to service unproductive debts better. Accordingly, today’s haunting macroeconomic issues may fade into a glorious future.
Hosted by RIA Advisors Chief Investment Strategist Lance Roberts, CIO, w Portfolio Manager, Michael Lebowitz, CFA
Produced by Brent
Tags: Featured,newsletter
21 pings
Skip to comment form ↓