Actuarial Outpost
 
Go Back   Actuarial Outpost > Actuarial Discussion Forum > Finance - Investments > Non-Actuarial Personal Finance/Investing
FlashChat Actuarial Discussion Preliminary Exams CAS/SOA Exams Cyberchat Around the World Suggestions

IMMEDIATE NEED - Solvency II Experts - Associate to Partner Level
Browse Solvency II jobs at www.DWSimpson.com/jobs/in/solvency-ii

Reply
 
Thread Tools Display Modes
  #41  
Old 04-30-2012, 11:14 AM
A Student A Student is offline
Member
 
Join Date: Dec 2001
Posts: 1,980
Default

Quote:
Originally Posted by Mr. B View Post
Just a personal anecdote from ancient history:

About twenty-five years ago, I was applying to my discount broker at the time, Charles Schwab, to be able to, among other things, sell puts. I got a call from the manager of the local office telling me that selling puts was a dangerous, very risky strategy, since your potential losses are very large relative to potential rewards (this was the received wisdom among most financial types at the time—I really don't know if it's changed much since then.)

I tried to explain to him that, for me, I wouldn't be selling naked puts just to get free money, I'd be doing it to reduce the cost basis of stocks I wanted to own. Unfortunately for him, he was too stupid to understand. To him, selling naked puts was, as he'd undoubtedly learned at some worthless financial seminar, extremely risky, and not for the average investor.
LOL - that is not just ancient history. When I applied to E-trade to sell naked puts I got a call from them asking about my goal. I told them I wanted to generate cash flow and/or lower cost basis for entry points. That was not the right answer apparently, and they insisted that I wanted to speculate. Selling covered calls was the way to generate income via options. Finally, I gave up and admitted I wanted to speculate and my app was approved. No sense trying to teach put-call parity...
Reply With Quote
  #42  
Old 04-30-2012, 11:33 AM
solarcurve's Avatar
solarcurve solarcurve is offline
Member
CAS
 
Join Date: Jan 2012
Posts: 1,410
Default

lol. I've found its better to just tell them what they want to hear and not try to get too creative with it.
Reply With Quote
  #43  
Old 04-30-2012, 11:39 AM
asdfasdf's Avatar
asdfasdf asdfasdf is offline
Member
 
Join Date: May 2004
Location: My perception of reality
Studying for nication
Posts: 20,114
Default

Quote:
Originally Posted by solarcurve View Post
lol. I've found its better to just tell them what they want to hear and not try to get too creative with it.
I made a nominal RRSP contribution years ago, like, 10k IIRC, I knew what I wanted to put it in, but the advisor force me to go through the investment strategy quiz, that I easily could've written, I just gave the answers they wanted to hear.
__________________
Your own conciousness blinds you to the true existence of all things external to it.
Reply With Quote
  #44  
Old 04-30-2012, 12:03 PM
DixieFlyer's Avatar
DixieFlyer DixieFlyer is offline
Member
SOA AAA
 
Join Date: Mar 2007
Favorite beer: Sam Adams Double Bock
Posts: 2,322
Default

20% stocks
20% bonds
20% gold/silver
20% real estate
20% cash
__________________
Don't steal; the government hates competition.
ΜΟΛΩΝ ΛΑΒΕ
Reply With Quote
  #45  
Old 04-30-2012, 12:50 PM
JohnLocke's Avatar
JohnLocke JohnLocke is offline
Member
SOA
 
Join Date: Mar 2007
Posts: 14,189
Default

Quote:
Originally Posted by DixieFlyer View Post
20% stocks
20% bonds
20% gold/silver
20% real estate
20% cash
Hey, I kinda like that allocation. Wish it were possible in my 401(k)
__________________
i always post when i'm in a shitty mood. if i didn't do that, i'd so rarely post.

--AO Fan
Reply With Quote
  #46  
Old 04-30-2012, 12:58 PM
Dismal Science's Avatar
Dismal Science Dismal Science is offline
Member
 
Join Date: Jun 2009
Posts: 26,270
Default

Hey Guys - what percent of your portfolio is invested in Beanie Babies?
Reply With Quote
  #47  
Old 04-30-2012, 01:16 PM
Stan's Avatar
Stan Stan is offline
Member
SOA
 
Join Date: Dec 2008
Location: Midwest
Studying for awesomeness
Posts: 4,786
Default

Quote:
Originally Posted by Dismal Science View Post
Hey Guys - what percent of your portfolio is invested in Beanie Babies?
Good idea. BB are a truly under valued investment opportunity, just like penny stocks!
Reply With Quote
  #48  
Old 04-30-2012, 01:25 PM
sixt8 berd's Avatar
sixt8 berd sixt8 berd is offline
Member
 
Join Date: May 2006
Posts: 873
Default

Quote:
Originally Posted by Dismal Science View Post
Hey Guys - what percent of your portfolio is invested in Beanie Babies?
In current value or purchase price?
Reply With Quote
  #49  
Old 04-30-2012, 01:27 PM
Dismal Science's Avatar
Dismal Science Dismal Science is offline
Member
 
Join Date: Jun 2009
Posts: 26,270
Default



I remember back at the highs when my parents bought the $400 "Princess Di" Beanie Baby.

Reply With Quote
  #50  
Old 04-30-2012, 02:13 PM
undegaussable's Avatar
undegaussable undegaussable is offline
Member
SOA
 
Join Date: Aug 2008
Studying for eudaimonia
Posts: 1,050
Default

Here's an interesting perspective from earlier this month on whether the stock market is currently overpriced: http://www.advisorperspectives.com/d...-Valuation.php

The P/E10 is (or was earlier this month) around 22.2. Clearly it trends upwards but doing a regression on the P/E10 shows it to be well above the trendline:

Spoiler:


Seems to be a good argument for staying out of the stock market for now and keeping money in bonds and other vehicles...
Reply With Quote
Reply

Thread Tools
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off


All times are GMT -4. The time now is 03:19 AM.


Powered by vBulletin®
Copyright ©2000 - 2014, Jelsoft Enterprises Ltd.
*PLEASE NOTE: Posts are not checked for accuracy, and do not
represent the views of the Actuarial Outpost or its sponsors.
Page generated in 0.40495 seconds with 9 queries