2 ms·
Of the 350,000 portfolios on kaChing, 1,500 have actually generated positive returns over the past seven months, which is no mean feat. The broader market is d
by byrneseyeview 18y ago
Of the 350,000 portfolios on kaChing, 1,500 have actually generated positive returns over the past seven months, which is no mean feat.
The broader market is down almost 40% in that time. But the standard deviation of returns is way up. And it looks like they let you short, too.
I am actually surprised, in this case, that there are so few positive returns. I would expect at least 1% of investors to be betting on financial apocalypse.
- pragmatic 18y agoHow do you play a "financial apocalypse"? You'd have to know the exact market timing or shorting costs would eat you up.
- byrneseyeview 18y agoYou only short with a little of your account, and you keep it constant, i.e. you always stay mostly in cash and 20% short. Paulson, Chanos, etc. didn't set up their pessimistic portfolios so they gradually go down if the prediction comes true, not so they get wiped out.