Leverage Scares Me a Lot

2min Snip

00:00

Play full episode

Summary

Transcript

Episode notes

Leverage scares me a lot. And it's something that's certainly present in the crypto o system, and you can't avoid how that moves asset prices up and down. I think this is something that i was really blind to for a long time, but as i've gotten to understand the financial system better, it's just insane. Even there was that time in march of this year where markets went down a couple percentage points, and that was because that guy who ran tiger global was very leveraged, and i think he had a margin call. So that is definitely a something people should be aware of. Yes. We also have the two thousands, and there's more regulations around

At a time where several asset classes are at all-time highs, there's a lot of talk about whether we're in a bubble. That, coupled with crypto assets falling to ~half of their highs, prompted Cal and Steph to dive in to try to answer this question.

In this episode, they discuss the markings of past bubbles, the innovation hype cycle, the difficulty in profiting from nascent innovations, the importance of educating yourself and building your own conviction behind your decisions, managing your psychology (offense vs defense), the cyclical nature of market cycles, and of course... the burning question of whether they think we're in a bubble today.

They also share how they've fared in crypto and how they're thinking about investing moving forward (including Cal's foray into de-fi)

Recommended resources include the books "The Simple Path to Wealth" and "A Random Walk Down Wallstreet", as well as economic indicators like the Shiller PE ratio: https://www.multpl.com/shiller-pe

*** NOT FINANCIAL ADVICE *** :)