I don't know what this insurance is you keep speaking of. There's no policy I know of that you can buy to indemnify random stock investments from market losses. I suppose variable annuities with living riders are technically a form of insurance, but those typically will protect the future earning stream of an investment, not the principal directly. And I've yet to see one that lets you select the stocks - usually they have a set lineup of mutual fund options. Are you perhaps suggesting incorporating a type of derivative strategy, using call or put options to protect your investment? I guess you can call that a form of insurance, but you'd be capping your upside in exchange for some downside protection. There are market-linked notes that can help limit losses - effective strategies, but they don't remove market risk completely, and you can't pick your own underlying stocks unless you're doing it at the seven-figure level. Market-linked CDs do fully protect the principal, but the upside again is significantly capped. That's as close as I can get to insuring my investments, so what am I missing?
Even if you *could* simply buy insurance that way, it's still a losing strategy. They insurance companies have to make money, and over the long term you'd have to lose money by insuring against losses.
Are you talking swaps? You can secure a short position on stocks to mitigate losses, but you will still suffer a loss. The cost of the contracts will also eat into any profits if your stock rises. But as we saw in 2007-2008, some investors made a killing by buying credit default swaps especially from AIG before the big crash in the CDO/MBS market.
The principle is never in peril. The main investments don't need any protection. Capping your upside is part of the philosophy. You keep stumbling over this part because capping your upside seems anathema to the philosophy of capitalism. It is actually the spirit of capitalism that has been transmogrified into what it is now. Or to put it simpler it is an error in perspective. You are 100% correct as per your school. But your doctor needs you to need pills with fucked up side effects. Your dentist needs you to need painful and expensive dental work. And your dealer needs you to need the instant relief of his drugs. That is not capitalism, that is wizardry. Capitalism is not a race to the pinnacle. It is a race to build your capital. Your heart. Then once you build it you protect it. And once you protect it to project it by the power of its own force. Which is to go forth and multiply. Projection allows a small capital to appear like a giant pyramid to those with the opposite perspective. Those in that opposite perspective = prospective victims catharted into your multiplied multitude of customers. Capitalism is not Iron Man. Its not about the future/endgame/destiny/thanos. Capitalism is Captain America but he went out of favor a long time ago because he put wings on his helmet and boots. The philosophy of capitalism in the heart of each man is different. Iron Man is how we now have decided to practice and understand it. Luckily there is climate change to thaw that frozen heart out of its ice cap. If you really wanted more info I could link to a video of a financial advisor. Sure he wont change the subject into long winded pop culture based philosophical arguments and examples abstracted out of his ??? when he doesn't have a more readily available way to clarify the answers the questions you were asking and instead beg you to ponder the the idea that there is a mathematical logic to making $$$ from the seemingly vacuum of [ |-| @ () $ that creates something out of nothing by projecting upon those that sell their goods, services, and credit the thing that satiates their desire. A good deal. He will instead answer you with a bunch of mumbo jumbo finance speak that you wont truly understand but will nod your head to and feel sufficiently satisfied into believing you understand enough to fork over the money he will charge you for putting a series of current jargon in the current predetermined order proven to convince your segment of the demo how to maximize their investment for the most efficient gains staying one step ahead of the game with his help to assure you the most profit. Which is his way of force projection that from my perspective is capitulation not capitalism.
Nothing that complicated, I was responding to the hypothetical concept of buying insurance to cover speculative losses. That's always a losing strategy in the long run. Agree that you could use derivatives to limit your downside risk, but at a cost. With regard to credit-default-swaps, like any investment, you can get lucky with timing and make a lot of money, that doesn't mean it's always a winning strategy. In the case of CDS, sooner or later someone is going to get left holding the bag when they actually start defaulting and the equities that back them don't cover the debt.
and fannie and freddie got bailed out but have paid it back millions of times over time for them to release those companies back into the wild definitely have a chip placed there
This is the insurance I am talking about. There is always insurance when you bet alongside the wave that can't lose. If it loses everyone loses and so it can't be allowed to lose. If you understand that then you know what bets are safe. The only way you lose is if everyone else loses too. And at that point everyone's a winner.
Is it bad that this made me laugh audibly like 20 times? "I don't give a shit about no video! Neighborhood Crip, bitch!!" hahahahaha Pretty much only feel bad for the kiddos.
This and that little league game in CO. What is wrong with people. Take that shit away from your kids.
I cant believe this was allowed to continue for so long. Dudes walking around hitting women and shit... amazing.
