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/biz/ - Business & Finance

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52865003 No.52865003 [Reply] [Original]

I have a $920k portfolio but $400k in margin. I have about $250k in cash, but I wanted to see what /biz/ thought I should do. Should I pay off some of the margin loan or should I buy more index funds and securities while the price is low?

My margin rate is 5.75% but I expect it to be at 7% by mid year, then I expect a cut back to 5.75% by this time next year. My thesis is that the fed will cut back to near 0%-3% eventually in the next 2 years, making the margin loan rate anywhere from 2%-5%.

Or I could just let it ride and go all in eth and buttcorn.

>> No.52865046

Anyone else have dreams like this webm? Like a combination of Looney Tunes and Myst.
>>52865003
>My thesis is that the fed will cut back to near 0%-3% eventually in the next 2 years, making the margin loan rate anywhere from 2%-5%.
Go all into margin. You seem like the type to know what they're doing.

>> No.52865067

>>52865003
kino as fuck, holy shit

>> No.52865106

>>52865003
obviously the kid in this guy never died, sweet.

>> No.52865114

>>52865003
I like how they worked together and got away in the end

>> No.52865163

I'm not sure I understand exactly the setup you have, is 920k your net figure?

Or you have 920k assets and 400k liabilities, from the margin?

Anyway, we don't know what you hold or what your risks are with it so how can we possibly say? Are you about to get liquidated? Then pay it down. Is it nearly impossible to get liquidated and in fact you could do with getting even more levered? Then buy more shit and loop the collateral back in on itself as much as you like.

>> No.52865241

>>52865163
920k in assets, 400k in liab from margin so the net equity is 520k. I have 80% of the port in a VTI/QQQ split, the rest of the 20% is in utility stocks and value stocks that don't really move to lower beta. These securities also have higher divs to help pay the margin interest.

I need to port to drop 40% to get liq'd. Unlikely but possible, the indexes are already down 20-30%. Most an index can fall in my simulations is 60% from ATH