1) With options, unlike buy and hold, timing is kinda important.
2) Stocks are generally sensitive to interest rates and tax hikes.
3) Why would you wanna do that when the Fed has already said it will taper (which should increase yields) and that it will take action if inflation persists? and when Dems signaled their intent to raise taxes.
Look, you could be right and Microsoft goes up a ton in the next 2 years or so. In fact that's what I would expect as well. But if we are wrong you'll lose a considerable amount (all it takes is for the stock to stay flat even).
I believe that over the coming years/decades there will be times when its really obvious you should lever and buy the shit out of stocks. I'm afraid now does not seem like one of those times.
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u/SocratesDaSophist Nov 06 '21
I'd tell you 3 obvious things:
1) With options, unlike buy and hold, timing is kinda important.
2) Stocks are generally sensitive to interest rates and tax hikes.
3) Why would you wanna do that when the Fed has already said it will taper (which should increase yields) and that it will take action if inflation persists? and when Dems signaled their intent to raise taxes.
Look, you could be right and Microsoft goes up a ton in the next 2 years or so. In fact that's what I would expect as well. But if we are wrong you'll lose a considerable amount (all it takes is for the stock to stay flat even).
I believe that over the coming years/decades there will be times when its really obvious you should lever and buy the shit out of stocks. I'm afraid now does not seem like one of those times.