Episode 468: Revisiting Listener Gambling Problems, Canadian Considerations, And A Visit To the Father McKenna Center

Nov 26, 2025

Listeners dive into the risky world of leveraged ETFs and Bitcoin wrappers, exploring the fine line between thrill and actual risk. Insights on owning gold in CAD versus USD entertain Canadian listeners, while preferred shares come under scrutiny as alternatives are suggested. Bouncing back to community impact, a heartfelt visit to the Father McKenna Center highlights how donations and volunteer work uplift those in need. The hosts emphasize the importance of genuine value in investments for lasting financial health.

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ADVICE

Prefer Spot Bitcoin Over Engineered Wrappers

Avoid using complex Bitcoin derivatives when you can own spot Bitcoin or a simple ETF instead.
Do not rely on engineered yield structures like STRC to manufacture long-term returns tied to Bitcoin.

ANECDOTE

Grant's Leveraged Gambling Chronicles

Grant has repeatedly experimented with leveraged ETFs and Bitcoin-linked plays, evolving from UPRO to levered Golden Butterfly mixes.
Frank finds Grant entertaining and cautions against heavy gambling with such levers.

INSIGHT

High Yield May Be Return Of Capital

Products that pay high yields by returning capital often mask declines in underlying value.
Frank warns these structures can decay if the underlying (Bitcoin) doesn't out-earn the payout.

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In this episode we answer emails from Grant, Brian, and Mourad. We unpack Grant's various gambling problems with leveraged ETFs and Bitcoin wrappers, owning gold in CAD or USD for Canadians, the role of preferred shares and Mourad's recent visit to the Father McKenna Center.

Links:

Father McKenna Center Donation Page: Donate - Father McKenna Center

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Breathless Unedited AI-Bot Summary:

Ever been tempted by a product that promises steady price, double‑digit yield, and exposure to the hottest asset on earth? We take a hard look at leveraged ETFs, Bitcoin‑linked strategies, and engineered income, then draw a clean line between thrill and risk you can actually carry. Grant checks in with a levered twist on the Golden Butterfly, swapping UPRO for TQQQ and TNA, and we explain why the Russell small cap complex often hides junky growth that fails to diversify when you need it most. If you want real balance, pair concentrated growth with genuine value or defensives, not a label that only looks like value on a factsheet.

We also break down MicroStrategy’s stock behavior versus spot Bitcoin and explore STRC, the “preferred” fund aiming to keep price near par while dialing a high payout. The headline yield is labeled return of capital, which may defer taxes but doesn’t manufacture wealth if the underlying can’t out-earn distributions. When the tide turns, structures like this tend to leak value, especially if they rely on direction and volatility to cooperate. If your goal is Bitcoin exposure, owning a spot ETF is usually cleaner and more predictable than chasing premium/discount dynamics or engineered yield.

For Canadian listeners, we make the case for treating gold as a currency and holding it in CAD to match real-world spending, reducing the noise of USD/CAD swings. Bonds are different: long U.S. Treasuries remain premier crisis ballast thanks to reserve currency demand. We review a thoughtful 50% equity risk‑parity‑style allocation targeting a 5% withdrawal rate, flag why a heavy preferred shares sleeve can be a drag, and suggest shifting part of that into long duration Treasuries, more gold, or a true diversifier like managed futures. Want portfolios that survive the cycle? Favor transparent exposures, honest hedges, and tools like Portfolio Charts to pressure‑test your mix across currencies.

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