/biz/ - Business & Finance

SELL SELL HOLY FUCK SELL

bout to buy some TVIX and fuck this market

>>15084763
Hard to tell the difference between dips and knives

>This is a basic traded fund. The original ones were simple, dozens of bluechip stocks bundled together and sold with a guarantee from the US government. But the modern day ones are private and are made up of layers of leverage, with the 1x highest rated getting paid first and the lowest, 3x rated getting paid last and taking on insolvency first. Obviously, if you're buying 3x levels you can get paid more. Hey, they're risky, so sometimes they fail...
>But somewhere along the line these 3x and 2x levels went from a little risky to dog shit. Where's the trash? I'm talking rock bottom investments, no NYSE verification, penny stocks... Dog shit. Bankruptcy rates are already up from 1 to 4 percent. If they rise to 8 percent, and they will, a lot of these's 1x's are going to ZERO.
>And that, my friends, is an opportunity
>You're sure of the math?
>RKG is my quant. Look at him, he doesn't even speak English properly. He won a national math competition on /biz/. Yeah, I'm sure of the math.
>So you're offering us the chance to short that pile of blocks? How?
>With something called a "Long Put". It's like insurance on the security. And if it goes bust you can make a 10 to 1, even 20 to 1 return. And it's already slowly going bust.
>10 to 1? 20 to 1? There's no way.
>But no one is paying attention. No one is paying attention cause all the brokers busy get paid obscene amounts of fees selling these funds. Basically, I'm standing in front a burning house and offering you fire insurance on it.
>How can the leveraged funds in these pools be as bad as you say? They wouldn't be legal.
>No one knows what's in these funds. I've seen some that are 65% bluechip that are actually full of 95 percent biotech shit with picks like LCI.
>Get the fuck out of here!