there is such a thing - but never forget - no one is smarter than the market...

invest for th long term...i buy levered etfs becasue its cheap leverage (extra 40-50 bps in fees over regular etfs)...and if you believe the market will return 6-8% over the next 20 years as i do - ill make 12-16%/yr

 

You can make 12 - 16% in a short week, year after year. So if you are willing to settle for that annual return, why would you risk your money for the remaining 51 weeks?

Treasuries ARE NOT the only risk free investments and their yeild is as much as 50% lower than other risk free investments.

 

how can u make 16% in a week? kudos to you my friend - and dot coms and houses only go up

Treasuries are the only risk free investments my friend..no other other entity has the ability to tax all their residents until they can repay the debt..you say munis? nope - if the state of georgia raises their taxes to 80% so they can repay their debts many many mny people will up and move cauzsing the states revenue to plummet nd default on their debt...sure, you can put up to $100k in a cd and qualify for FDIC insurance - i guess thats pretty riskless

 

The $100m FDIC protection is only limited to the institution and NOT the investor. Whether you have $100,000 or $10,000,000 to invest and want no risk, the better retrun will come from CD's of the same term.


Current 2 year Treasury yeild is 3.18%
Current 2 year CD yeild is 4.75%

So unless you think it is smart to give up more than a 50% higher yeild, smart money would go with the insured CD for an INVESTMENT.

I do not INVEST in the markets....I TRADE the markets.



As far as big daily returns, I guess you don't trade options or stocks? Look at the January GOOG 690 calls and the AAPL 185 calls.

 

If you really want to buy and enjoy a C4S and not be screwed too much financialy do the folowing:

1. Find a low mileage, Porsche certified with warranty(100K miles) that is 3 or 4 years
old. On purchase price you will save $25-$35 thousand easily and have a terrific
CAR...

2. if you own a home pay with a 2nd mortgage..You get the best interest rate and the
interest is tax deductible.
Be smart so you will be solvent to buy another Porsche another day....

 

be my guest and play options..if you think you are guranteed a return other than the risk free rate than either you are a fool or black, scholes, merton and other nobel winners for work in finance are fools...hmmmm

google the black scholes or arbitrge pricing models for options
stock + put - call = risk free rate
write naked calls? unlimited downside
buy calls? 100% downside
etc....

like i said - fdic insured cds are good

i dont trade the mrkets - i invest

 

Well, if you can't stomach trading (with no overnight risk whatsoever) then I guess you are stuck with only moderate returns. I would mush rather go for the daily doubles. However, it was a bad day today, since I only cashed in on a 10% return with 4 hours of risk.

If you think that treasuries are risk free, I guess you weren't around in the 80's, where you could have lost as much as 80% in treasuries.

 

that my friend is called interest rate risk

All fixed income investments have interest rate risk. We were talking about credit risk or the risk of not getting paid. Treasuries ate the only investments with no credit risk. Good luck with your trading

 

Lol, so yeah um buy the car.

 

Thanks for all the info. I've decided to buy and pay off immediately.

Unfortunately, in Canada interest (mortgage) is not tax deductible.

 

One thing is for sure. You are making an excellent choice in buying a Porsche. I have owned 5 starting in 1977 and loved every minute....enjoy and welcome to the club...

 

Mortgage interest is mostly non deductable here in the States, also, for higher income levels.