/biz/ - Business & Finance

>they don't realize the govt itself is in a bubble

What happens when the cycles turns to bust?

>>17281859

>be me
>sell a vertical put spread on MSFT
>this was Wednesday before market close, obviously
>market closes
>MSFT beats expectations
>price gaps up next day
>my short vertical put spread is now at the maximum loss I can lose
>MSFT gapped up

I really don't fucking get it.

>he's not a billionaire yet

Inflation - 2%

This is the entire reason why people expose their money. They need to expose it because if not, then they would just slowly lose money. So, the first and most important reason for getting into the markets is to protect what you have.

Then, you have to utilize your capital. You want income. Either to produce or to benefit. (starting a company; buying preferreds) (this is like renting out a house)

Then, after you've gotten your risk managed and your income set, you then may focus on equity appreciation. Though, you don't want to do this with any principal. You only want to do this with the interest you get from the income. Though, you're most likely not going to get a good deal on a stock buying under the quote by 10% or so, like you would strive to do when buying a house for flipping purposes. So, you'd most likely just buy shares of company A and let them set for 10 or so years.

Though, what's the point of letting your capital sit without producing income? You want cash flow. You NEED cash flow.

Capital protection; Income production; Equity appreciation. In this order.

Or you could become a politician and start a business and lobby your competition out of the marketplace and force the taxpayers to buy your products. (pic related)

>if you can figure this out you can make billions with a small capitol investment

how? This was on /pol/.