PodParley PodParley
PodParley PodParley
Log in

12-3-24 What Excessive Leverage Teaches Us

Periods of extreme leverage and speculation are n…

An episode of the The Real Investment Show (Full Show) podcast, hosted by Lance Roberts, titled "12-3-24 What Excessive Leverage Teaches Us" was published on December 3, 2024 and runs 45 minutes.

December 3, 2024 ·45m · The Real Investment Show (Full Show)

0:00 / 0:00

Summary

Periods of extreme leverage and speculation are not new, and the outcomes have consistently been painful for unprepared investors. The late 1990s dot-com bubble serves as a prime example. Speculative bets on internet stocks drove valuations to extraordinary levels, with investors leveraging margin accounts and options to chase gains. When the bubble burst, the Nasdaq lost nearly 80% of its value, leaving leveraged traders especially vulnerable to devastating losses. Lance and Jonathan discuss these lessons from history on today's show, plus a discussion on asset diversification, and what happens when all assets become correlated, the fallacies of diversification, and overlap risk. Money mistakes made by the young; the bset stop-loss tools and strategies; the flaw in comparing portfolio performance to the S&P Index (or any index). SEG-1: Why Sentiment-driven Indexes are Up SEG-2: Lessons from History - What Excessive Leverage Teaches Us SEG-3: The Fallacies of Diversification SEG-4a: The Best Stop-loss Tool SEG-4b: Comparing Portfolios to S&P Index Hosted by RIA Advisors Chief Investment Strategist Lance Roberts, CIO, w Senior Financial Advisor Jonathan Penn, CFP Produced by Brent Clanton, Executive Producer ------- Watch today's show video here: https://www.youtube.com/watch?v=s95h3jUr3c4&list=PLVT8LcWPeAugpcGzM8hHyEP11lE87RYPe&index=1&t=2s ------- Articles mentioned in this report: "Leverage And Speculation Are At Extremes" https://realinvestmentadvice.com/resources/blog/leverage-and-speculation-are-at-extremes/ "Extreme Speculation Has Returned" https://realinvestmentadvice.com/resources/blog/extreme-speculation-has-returned/ ------- The latest installment of our new feature, Before the Bell, "Diversification Isn't What You Think" is here: https://www.youtube.com/watch?v=rmN8a-6Yr5g&list=PLwNgo56zE4RAbkqxgdj-8GOvjZTp9_Zlz&index=1 ------- Our previous show is here: "Extreme Speculation Has Returned" https://www.youtube.com/watch?v=HIfTDuPmsQs&list=PLVT8LcWPeAugpcGzM8hHyEP11lE87RYPe&index=1&t=2s ------- Get more info & commentary: https://realinvestmentadvice.com/newsletter/ -------- SUBSCRIBE to The Real Investment Show here: http://www.youtube.com/c/TheRealInvestmentShow -------- Visit our Site: https://www.realinvestmentadvice.com Contact Us: 1-855-RIA-PLAN -------- Subscribe to SimpleVisor: https://www.simplevisor.com/register-new -------- Connect with us on social: https://twitter.com/RealInvAdvice https://twitter.com/LanceRoberts https://www.facebook.com/RealInvestmentAdvice/ https://www.linkedin.com/in/realinvestmentadvice/ #MarketLeverage #SpeculationRisks #InvestmentTrends #FinancialWarnings #StockVolatility #StockMarketSpeculation #MarketVolatility #HighRiskInvesting #SpeculativeTrading #FinancialTrends2025 #TrumpAdministration #RegulatoryChanges #InvestingAdvice #Money #InvestingAdvice #Money #Investing

Episode Description

Periods of extreme leverage and speculation are not new, and the outcomes have consistently been painful for unprepared investors. The late 1990s dot-com bubble serves as a prime example. Speculative bets on internet stocks drove valuations to extraordinary levels, with investors leveraging margin accounts and options to chase gains. When the bubble burst, the Nasdaq lost nearly 80% of its value, leaving leveraged traders especially vulnerable to devastating losses. Lance and Jonathan discuss these lessons from history on today's show, plus a discussion on asset diversification, and what happens when all assets become correlated, the fallacies of diversification, and overlap risk. Money mistakes made by the young; the bset stop-loss tools and strategies; the flaw in comparing portfolio performance to the S&P Index (or any index). SEG-1: Why Sentiment-driven Indexes are Up SEG-2: Lessons from History - What Excessive Leverage Teaches Us SEG-3: The Fallacies of Diversification SEG-4a: The Best Stop-loss Tool SEG-4b: Comparing Portfolios to S&P Index Hosted by RIA Advisors Chief Investment Strategist Lance Roberts, CIO, w Senior Financial Advisor Jonathan Penn, CFP Produced by Brent Clanton, Executive Producer ------- Watch today's show video here: https://www.youtube.com/watch?v=s95h3jUr3c4&list=PLVT8LcWPeAugpcGzM8hHyEP11lE87RYPe&index=1&t=2s ------- Articles mentioned in this report: "Leverage And Speculation Are At Extremes" https://realinvestmentadvice.com/resources/blog/leverage-and-speculation-are-at-extremes/ "Extreme Speculation Has Returned" https://realinvestmentadvice.com/resources/blog/extreme-speculation-has-returned/ ------- The latest installment of our new feature, Before the Bell, "Diversification Isn't What You Think" is here: https://www.youtube.com/watch?v=rmN8a-6Yr5g&list=PLwNgo56zE4RAbkqxgdj-8GOvjZTp9_Zlz&index=1 ------- Our previous show is here: "Extreme Speculation Has Returned" https://www.youtube.com/watch?v=HIfTDuPmsQs&list=PLVT8LcWPeAugpcGzM8hHyEP11lE87RYPe&index=1&t=2s ------- Get more info & commentary: https://realinvestmentadvice.com/newsletter/ -------- SUBSCRIBE to The Real Investment Show here: http://www.youtube.com/c/TheRealInvestmentShow -------- Visit our Site: https://www.realinvestmentadvice.com Contact Us: 1-855-RIA-PLAN -------- Subscribe to SimpleVisor: https://www.simplevisor.com/register-new -------- Connect with us on social: https://twitter.com/RealInvAdvice https://twitter.com/LanceRoberts https://www.facebook.com/RealInvestmentAdvice/ https://www.linkedin.com/in/realinvestmentadvice/ #MarketLeverage #SpeculationRisks #InvestmentTrends #FinancialWarnings #StockVolatility #StockMarketSpeculation #MarketVolatility #HighRiskInvesting #SpeculativeTrading #FinancialTrends2025 #TrumpAdministration #RegulatoryChanges #InvestingAdvice #Money #InvestingAdvice #Money #Investing

Share this episode

Similar Episodes

Lump Sum vs Pension, Dividends & Market Risks Explained

Apr 9, 2026 ·41m

TBT: When are Mortgage Rates Too High?

Apr 9, 2026 ·32m

He Retired His Spouse with Passive Income after 6 Months… What’s Next?

Apr 7, 2026 ·40m

Retirement Is Evolving—Are You Keeping Up?

Apr 2, 2026 ·39m

TBT: Is It Wise to Buy Real Estate When Interest Rates are Rising?

Apr 2, 2026 ·27m

The White House Wants to Give You $1,000 for Retirement

Apr 2, 2026 ·11m

Similar Podcasts

Make the Deal: Real Estate Investing with David Blatt David Blatt This show offers expert advice on real estate investing from CapStack Partners CEO, David Blatt.CapStack Partners is an investment bank and investment manager focused on the real estate, hospitality, infrastructure and energy industries. As CEO, David Blatt leads all of CapStack’s investment banking and principal investing activities. Over the last fifteen years, he has been involved in the negotiating and structuring of countless transactions and brings an expert level understanding to successfully capitalizing and closing a deal. For more information, please visit: https://www.capstackpartners.comhttps://www.youtube.com/channel/UC3LUVd_n98UbyOKvn9VLScghttps://www.twitter.com/capstackceohttps://www.linkedin.com/capstackceo_davidblatthttps://www.facebook.com/David-Blatt-1395744087199314/https://plus.google.com/111313444823344430223 The Financial Answer with Nathan O’Bryant Nathan O’ Bryant The Financial Answer is hosted by Nathan O’ Bryant, founder of O’Bryant & Associates, Inc., an investment advisory firm registered in Tennessee and Arkansas. Drawing on over 20 years of experience in financial planning, Nathan shares insights on a wide range of topics including retirement income strategies, tax planning, market trends, Social Security, portfolio management, and more. The show explores the real questions people face when planning for their financial future, offering clear explanations and thoughtful discussion to help listeners make informed decisions. No topic is off limits as Nathan breaks down both timely developments and foundational principles of personal finance. The Jay Conner Show Jay Conner Jay Conner reveals his real estate investment and wealth building strategies centered around finding investment properties, funding deals with private money, and flipping those properties in as little as 3 days! The Zandbergen Report Bart Zandbergen, CFP The Zandbergen Report: Wealth Management Strategies and Investment Wisdom with Bart Zandbergen, CFP. The weekly, 30 minute show features guests in professional services including mortgage, real estate, law and litigation, as well as entrepreneurs and executives in industries like health, fitness, style and philanthropy. Each episode showcases the dynamic guest and the investments they have made in their career, their clientele and themselves to raise the bar for excellence in their respective industry. Also, The Zandbergen Report features guest host Letitia Berbaum of The Zandbergen Group, who brings a fierce millennial perspective to the table while interviewing guests solo and in her round table sessions on air with Bart as they talk about the latest ups, downs and shifts in the market.
URL copied to clipboard!