00454 Asset Allocation Leverage Pledge Cash Ratio and Smart Rebalancing Method rev 2.0 January 20, 2024 CLEC Investment and Financial Management Channel

Number: 00454

Published: 2024-01-20

Pages: 20

Source filename: 00454 資產配置槓桿質押現金比例與聰明再平衡法 rev 2.0 2024年1月20日 CLEC 投資理財頻道.pdf

Original file: Open file

Previous presentation: 00453 January 13, 2024
Next presentation: 00455 January 27, 2024

Document Text

Index base, leveraged pledge current asset allocation and smart rebalancing method rev 1.0

CLEC Investment and Financial Management Channel 2024 1 20

Disclaimer

Our videos and related content are for educational purposes only, not for profit. We do not have any discussion groups or societies, if you are invited to join one, it is a scam.

We have offered free teaching for many years and have never profited from it. Do not trust any paid investment advice. Although ads may appear on YouTube videos, these are beyond our control and we do not make any money from them.

All the information we provide is only a sharing of experience and is not a recommendation from a professional investment advisor (Certified Financial Advisor/Planner). Investment decisions should be based on individual research and should not rely solely on video content.

Investment risks may result in heavy losses. If you cannot afford a loss of more than 10% in the short term or a decline of more than 20% in a few years, it is recommended not to invest. Please pay attention to cash-flow safety and fully understand our investment philosophy before making any move. Investments need to be prudent and all decisions must be made responsibly.

In the worst case scenario, if your assets lose more than 80%, you can still hold on and invest in the stock market.

Background information

Our starting point is retirement at point 3 in 2000, the highest point in the past two thousand years, which is when we know that the market risk is the highest.
Under simulated extreme market pressure, any combination of assets will suffer a loss of more than 80% (including 2% of your annual expenses.), which can maximize risk-controllable assets. All simulations will be based on different market conditions and changes. Although our most advanced simulation this time will get different results from other investment portfolios and different market conditions. It is recommended that each simulation be done based on the conditions, and it is relatively safe to do it once a year. .
In the worst case scenario, if your assets lose more than 80%, you can only invest in the stock market if you can still hold on.
Total net worth is calculated until 2024 1 12.

And arrogant and arrogant, a person is as tall as a day and a month, and he is as powerful as he is.

00454 Asset Allocation Leverage Pledge Cash Ratio and Smart Rebalancing Method rev 2.0 January 20, 2024 CLEC Investment and Financial Management Channel

Background information

The risk is not directly related to whether you have pledged or not, nor whether you have invested in a leveraged fund. Even if you do not pledge or leverage, the assets of the index fund alone fell by 80% from 2000 to 2003.
The risk is entirely related to the market conditions. The risk level will not change due to pledge or investment leveraged fund. The key point is to understand the risk of your asset allocation in order to control the risk.
The pledge maintenance rate varies by country, region, and bank. Don't ask me what the minimum maintenance ratio is reasonable. Ask your pledged-lending institution what adjustments should be made in the future to achieve the minimum maintenance ratio required by the local bank or broker in the worst situation.
For Charles Schwab pledged lending, prepare an extra US$100,000 in cash and leave it untouched.

Retirement Account Leveraged Fund Plus Stock-Pledge Portfolio Comparison

Situation: 2% of 1 million spent annually (20,000); 60% QQQ; 20% QLD 2x leverage; 20% cash; smart rebalancing
Smart rebalancing: In down years, transfer from cash (2% of annual living expenses (20,000)) to the leveraged fund; in up years, half of the annual appreciation of the leveraged fund is transferred to cash.
Situation: Spend 2% of 1 million per year (20,000); 50% QQQ; 25% QLD 2x leverage; 25% cash; smart rebalancing.
Situation 3: Spend 2% of 1 million per year (20,000); 40% QQQ; 30% QLD 2x leverage; 30% cash; smart rebalancing.
Situation 4: Spend 2% of 1 million per year (20,000); 40% QQQ; 30% QLD 2x leverage; 30% cash; mechanical average rebalancing.
Mechanical average rebalancing: annual leveraged fund and cash average rebalancing
Situation 5: Spend 2% of 1 million per year (20,000); 60% QQQ; 20% QLD 2x leverage; 20% cash; mechanical average rebalancing.
Mechanical average rebalancing: annual leveraged fund and cash average rebalancing
Situation 6: Spend 2% of 1 million years (20,000); 80% QQQ; 20% cash; mechanical proportional rebalancing.
Mechanical average rebalancing: unleveraged fund and cash proportional rebalancing.
Situation 7: Completely invest 100% in QQQ and sell stocks every time.

Situation 6: 80% QQQ; 20% cash; mechanical proportional rebalancing. Final net worth US$1.4 million(4)

Comparison of advantages and disadvantages

Final net worth:
Situation 1: 60% QQQ; 20% QLD 2x leverage; 20% cash; smart rebalancing. Final net worth US$2.85 million (1)
Situation 1: 50% QQQ; 25% QLD 2x leverage; 25% cash; smart rebalancing. Final net worth US$2.53 million(2)
Situation 3: 40% QQQ; 30% QLD 2x leverage; 30% cash; smart rebalancing. Final net worth US$2.22 million (3)
Situation 4: 40% QQQ; 30% QLD 2x leverage; 30% cash; mechanical average rebalancing. Final net assets (liquidated midway.) (6) US$4.88 million
Situation 5: 60% QQQ; 20% QLD 2x leverage; 20% cash; mechanical average rebalancing. Final net assets (liquidated midway.) (7) US$4.3 million
Situation 6, 80% QQQ; 20% cash; mechanical proportional rebalancing. Final net worth US$1.4 million(4)
Situation 7: Completely invest 100% in QQQ and sell stocks every time. Final net worth US$720,000 (5)

Situation 6: 80% QQQ; 20% cash; mechanical proportional rebalancing. Worst maintenance ratio (discomfort) (4)

Comparison of the advantages and disadvantages of the worst maintenance ratio
Situation 1: 60% QQQ; 20% QLD 2x leverage; 20% cash; smart rebalancing. The worst maintenance ratio is 138.07% (3)
Situation 1: 50% QQQ; 25% QLD 2x leverage; 25% cash; worst risk rate is 150.09% (2)
Situation 3: 40% QQQ; 30% QLD 2x leverage; 30% cash; smart rebalancing. The worst maintenance ratio is 162.11% (1)
Situation 4: 40% QQQ; 30% QLD 2x leverage; 30% cash; mechanical average rebalancing. The worst maintenance ratio is 97.98%(7) (Liquidated.)
Situation 5: 60% QQQ; 20% QLD 2x leverage; 20% cash; mechanical average rebalancing. The worst maintenance ratio is 102.79%(6) (Liquidated.)
Situation 6, 80% QQQ; 20% cash; mechanical proportional rebalancing. Worst maintenance ratio (discomfort) (4)

Situation 6: 80% QQQ; 20% cash; mechanical proportional rebalancing. Final net worth US$229,000 (1)

Comparison of the pros and cons of minimum net worth
Situation 1: 60% QQQ; 20% QLD 2x leverage; 20% cash; smart rebalancing. Minimum net worth US$120,000 (5)
Situation 1: 50% QQQ; 25% QLD 2x leverage; 25% cash; smart rebalancing. Minimum net worth US$150,000 (3)
Situation 3: 40% QQQ; 30% QLD 2x leverage; 30% cash; smart rebalancing. Minimum net worth US$180,000(2)
Situation 4: 40% QQQ; 30% QLD 2x leverage; 30% cash; mechanical average rebalancing. Minimum net worth (liquidated midway.) (6) US100,000
Situation 5: 60% QQQ; 20% QLD 2x leverage; 20% cash; mechanical average rebalancing. Minimum net worth (was liquidated midway.) (7) US$78,000
Situation 6, 80% QQQ; 20% cash; mechanical proportional rebalancing. Final net worth US$229,000 (1)
Situation 7: Completely invest 100% in QQQ and sell stocks every time. Final net worth US$125,000(4)

Situation 1: 60% QQQ; 20% QLD 2x leverage; 20% cash; smart rebalancing. Minimum loan amount US$264,000(3)

Comparison of the advantages and disadvantages of the minimum loan amount
Situation 1: 60% QQQ; 20% QLD 2x leverage; 20% cash; smart rebalancing. Minimum loan amount US$264,000(3)
Situation 1: 50% QQQ; 25% QLD 2x leverage; 25% cash; smart rebalancing. Minimum loan amount US$297,000 (2)
Situation 3: 40% QQQ; 30% QLD 2x leverage; 30% cash; smart rebalancing. Minimum loan amount US$330,000 (1)
Situation 4: 40% QQQ; 30% QLD 2x leverage; 30% cash; mechanical average rebalancing. Minimum loan amount (liquidated midway.) (6)US$194,000
Situation 5: 60% QQQ; 20% QLD 2x leverage; 20% cash; mechanical average rebalancing. Minimum loan amount (liquidated midway.) (7) US$185,000
Situation 6, 80% QQQ; 20% cash; mechanical proportional rebalancing. Minimum asset amount US$229,000 (4)
Situation 7: Completely invest 100% in QQQ and sell stocks every time. Minimum minimum asset limit US$125,000(5)

Situation 6: 80% QQQ; 20% cash; mechanical proportional rebalancing. Minimum net worth US$229,000 (1)

Minimum loanable balance (cash flow)
Situation 1: 60% QQQ; 20% QLD 2x leverage; 20% cash; smart rebalancing. Minimum loan balance US$35,000(5)
Situation 1: 50% QQQ; 25% QLD 2x leverage; 25% cash; smart rebalancing. Minimum loan balance US$68,000 (4)
Situation 3: 40% QQQ; 30% QLD 2x leverage; 30% cash; smart rebalancing. Minimum loan balance US$100,000 (3)
Situation 4: 40% QQQ; 30% QLD 2x leverage; 30% cash; mechanical average rebalancing. Minimum loanable balance (Liquidated.) (6)-US$40,000
Situation 5: 60% QQQ; 20% QLD 2x leverage; 20% cash; mechanical average rebalancing. Minimum loanable balance (Liquidated.) (7)-US$43,000
Situation 6, 80% QQQ; 20% cash; mechanical proportional rebalancing. Minimum net worth US$229,000 (1)
Situation 7: Completely invest 100% in QQQ and sell stocks every time. Minimum net worth US$125,000(2)

Minimum total loanable score Unleveraged Fund Leveraged fund Final net worth Worst maintenance ratio Minimum net worth loan balance situation Current down year strategy Up year strategy (lower ranking QQQ QLD yield yield (current win) flow)

Table 1

Minimum total loanable score Unleveraged Fund Leveraged fund Final net worth Worst maintenance ratio Minimum net worth Loan balance situation Current down year strategy Up year strategy (lower ranking QQQ QLD yield yield (current win) flow)

The current situation is that the leveraged fund year is increased by US$2.85 million 138% US$120,000 US$35,000 60% 20% 20% Half of the leveraged fund value is transferred to cash 16 5

(2) (4) (5) (5)

The current situation is that the leveraged fund year is increased by US$2.53 million 150% US$150,000 US$68,000 50% 25% 25% Half of the leveraged fund value is transferred to cash 12 3

(3) (2) (3) (4)

Situation: Current year-to-year leveraged fund year increase: US$2.22 million 162% US$180,000 US$100,000 40% 30% 30% Half of the leveraged fund value is transferred to cash 10 1 three (4) (1) (2) (3)

Situation 4: leveraged fund and cash, leveraged fund and cash, 97% maintenance ratio, forced liquidation, 40% QQQ, 30% QLD, 30% cash, average rebalancing, final net worth US$4.88 million, forced liquidation.

Situation 5: leveraged fund and cash, leveraged fund and cash, 102% maintenance ratio, forced liquidation, 60% QQQ, 20% QLD, 20% cash, average rebalancing, final net worth US$4.3 million, forced liquidation.

Condition cash and unleveraged fund cash and unleveraged fund US$1.4 million Unfit US$22.9 US$22.9 80% 0% 20% Annual proportion balance Ten thousand (1) Ten thousand (1) 10 1 Six-year proportion balance (5) (3)

Situation: US$720,000 per stock sold Unwell US$12.5 US$12.5 100% 0% 0% Live per stock sold Ten Thousand (4) Thousand (2) 15 4 Seven Lives (6) (3) One Gold One Gold One Two Gold Gold One Gold One Gold One Gold One Gold One Gold One Gold One Gold One Gold One Gold One Gold One Gold One Gold One Gold One Gold One Gold One Gold One Gold One Gold One Gold One Gold One Gold One Gold One Gold One Gold One Gold One Gold One Gold One Gold One Gold One Gold One Gold One Gold One Gold One Gold One Gold One Gold One Gold

Pledge borrowing strategy

50%-40% 00662
25%-30% 00864B + stock-pledge borrowing (excluding credit and housing loans.)
25%-30% 00670L + stock-pledge borrowing (excluding credit and housing loans.)
First separate the cash and 00670L tied to the stock-pledge loan, and then the remaining 60% 20% 20%
In the year of increase (no matter how much the increase is), at the end of December of that year, half of the increase in value of 00670 L (QLD) in that year will be transferred to cash.
In a year of decline (no matter how much the decline is), at the end of December of that year, take out the annual living expenses from cash and invest them in 00670 L(QLD)

Assets 3 million US dollars; pledged loan 400,000 US dollars example

Asset allocation
, set aside US$400,000 in cash equal to the pledged loan amount (the amount of pledged loan.) and US$400,000 in leveraged funds

-, 3 million, after deducting $400,000 in cash and $400,000 in leverage, the remaining 25% of $2.2 million is now 550,000 in cash positions and 550,000 in leverage positions, for a total of $1.1 million.

1. The total cash position is 400,000 plus 550,000, which is 950,000.
1. Equivalent 2x leverage position 950,000
1. Unleveraged Fund part 3 million-950,000-950,000=1.1 million.

The riskiest setup is pairing a leveraged fund with cash and using mechanical average rebalancing.

Pledged borrowing, the higher the leverage and cash, the lower the risk.
The higher the leverage and cash, the lower the final total assets.
The risk of not borrowing is low, but the assets will hardly grow.
Mechanical average rebalancing, any improvements?

What improvements can be made to mechanical average rebalancing?

In Situation 4 and Situation 5, the final total assets are relative, but unfortunately they were liquidated midway.
Investment is what I said, the biggest risk in investment is GAME OVER!
Situation 4 and 5: Situation 4 and 5 were short US$100,000 in cash at liquidation
If you can allocate assets in situations four and five, and add another $10,000 in cash (10% of retirement assets), you can get through the difficulties.
That is, to avoid being liquidated and bankrupt, the retirement preparation is 55 times the annual expenses.

Among them, 10% will never move or be rebalanced. They are prepared to reach the lowest point and will not be liquidated.

###, prepare to exchange the pledged loan amount for an equal amount of cash of 400,000 (pledged loan amount.); additionally invest in leveraged fund of $400,000

Example

Assets of 3.3 million US dollars; 400,000 US dollars of pledged loans have been pledged, and the leveraged fund has been rebalanced without any thought. $300,000 is now in permanent form, immovable and unbalanced.
Asset allocation
Prepare to exchange the pledged loan amount for an equal amount of cash of 400,000 (the amount of the pledged loan.); in addition, invest in a leveraged fund of $400,000

-, 3 million, after deducting $400,000 in cash and $400,000 in leveraged fund, the remaining 25% of $2.2 million is now 550,000 in cash positions of 550,000 and leverage positions of 550,000, for a total of $1.1 million.

1. The total cash position is 400,000 plus 550,000. Plus $300,000 (cannot be used for rebalancing.) Reserve cash for liquidation prevention. Total $1.25 million
1. Equivalent 2x leverage position 950,000 ($400,000 plus $550,000.)
1. Unleveraged Fund parts 3.3 million-950,000-950,000-300,000=1.1 million. beta 0.9

CLEC Investment and Financial Management Education College 00451 "2024" Investment Lecture: Investment Lecture worth 100 million yuan December 29, 2023 CLEC Investment and Financial Management Channel https://youtu.be/4FMjmyBpTzw-OneLife

It’s wonderful and happy that the market is rising every day🍂🌷🌹🌸🌼🌺🌻 🌞💫✨🌟🌈🌈❤

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Number: 00454

Published: 2024-01-20

Pages: 20

Source filename: 00454 資產配置槓桿質押現金比例與聰明再平衡法 rev 2.0 2024年1月20日 CLEC 投資理財頻道.pdf

Original file: Open file

Previous presentation: 00453 January 13, 2024
Next presentation: 00455 January 27, 2024

Document Text

Index base, leveraged pledge current asset allocation and smart rebalancing method rev 1.0

CLEC Investment and Financial Management Channel 2024 1 20

Disclaimer

Our videos and related content are for educational purposes only, not for profit. We do not have any discussion groups or societies, if you are invited to join one, it is a scam.

In the worst case scenario, if your assets lose more than 80%, you can still hold on and invest in the stock market.

Background information

Our starting point is retirement at point 3 in 2000, the highest point in the past two thousand years, which is when we know that the market risk is the highest.
Under simulated extreme market pressure, any combination of assets will suffer a loss of more than 80% (including 2% of your annual expenses.), which can maximize risk-controllable assets. All simulations will be based on different market conditions and changes. Although our most advanced simulation this time will get different results from other investment portfolios and different market conditions. It is recommended that each simulation be done based on the conditions, and it is relatively safe to do it once a year. .
In the worst case scenario, if your assets lose more than 80%, you can only invest in the stock market if you can still hold on.
Total net worth is calculated until 2024 1 12.

And arrogant and arrogant, a person is as tall as a day and a month, and he is as powerful as he is.

00454 Asset Allocation Leverage Pledge Cash Ratio and Smart Rebalancing Method rev 2.0 January 20, 2024 CLEC Investment and Financial Management Channel

Background information

The risk is not directly related to whether you have pledged or not, nor whether you have invested in a leveraged fund. Even if you do not pledge or leverage, the assets of the index fund alone fell by 80% from 2000 to 2003.
The risk is entirely related to the market conditions. The risk level will not change due to pledge or investment leveraged fund. The key point is to understand the risk of your asset allocation in order to control the risk.
The pledge maintenance rate varies by country, region, and bank. Don't ask me what the minimum maintenance ratio is reasonable. Ask your pledged-lending institution what adjustments should be made in the future to achieve the minimum maintenance ratio required by the local bank or broker in the worst situation.
For Charles Schwab pledged lending, prepare an extra US$100,000 in cash and leave it untouched.

Retirement Account Leveraged Fund Plus Stock-Pledge Portfolio Comparison

Situation: 2% of 1 million spent annually (20,000); 60% QQQ; 20% QLD 2x leverage; 20% cash; smart rebalancing
Smart rebalancing: In down years, transfer from cash (2% of annual living expenses (20,000)) to the leveraged fund; in up years, half of the annual appreciation of the leveraged fund is transferred to cash.
Situation: Spend 2% of 1 million per year (20,000); 50% QQQ; 25% QLD 2x leverage; 25% cash; smart rebalancing.
Situation 3: Spend 2% of 1 million per year (20,000); 40% QQQ; 30% QLD 2x leverage; 30% cash; smart rebalancing.
Situation 4: Spend 2% of 1 million per year (20,000); 40% QQQ; 30% QLD 2x leverage; 30% cash; mechanical average rebalancing.
Mechanical average rebalancing: annual leveraged fund and cash average rebalancing
Situation 5: Spend 2% of 1 million per year (20,000); 60% QQQ; 20% QLD 2x leverage; 20% cash; mechanical average rebalancing.
Mechanical average rebalancing: annual leveraged fund and cash average rebalancing
Situation 6: Spend 2% of 1 million years (20,000); 80% QQQ; 20% cash; mechanical proportional rebalancing.
Mechanical average rebalancing: unleveraged fund and cash proportional rebalancing.
Situation 7: Completely invest 100% in QQQ and sell stocks every time.

Situation 6: 80% QQQ; 20% cash; mechanical proportional rebalancing. Final net worth US$1.4 million(4)

Comparison of advantages and disadvantages

Final net worth:
Situation 1: 60% QQQ; 20% QLD 2x leverage; 20% cash; smart rebalancing. Final net worth US$2.85 million (1)
Situation 1: 50% QQQ; 25% QLD 2x leverage; 25% cash; smart rebalancing. Final net worth US$2.53 million(2)
Situation 3: 40% QQQ; 30% QLD 2x leverage; 30% cash; smart rebalancing. Final net worth US$2.22 million (3)
Situation 4: 40% QQQ; 30% QLD 2x leverage; 30% cash; mechanical average rebalancing. Final net assets (liquidated midway.) (6) US$4.88 million
Situation 5: 60% QQQ; 20% QLD 2x leverage; 20% cash; mechanical average rebalancing. Final net assets (liquidated midway.) (7) US$4.3 million
Situation 6, 80% QQQ; 20% cash; mechanical proportional rebalancing. Final net worth US$1.4 million(4)
Situation 7: Completely invest 100% in QQQ and sell stocks every time. Final net worth US$720,000 (5)

Situation 6: 80% QQQ; 20% cash; mechanical proportional rebalancing. Worst maintenance ratio (discomfort) (4)

Comparison of the advantages and disadvantages of the worst maintenance ratio
Situation 1: 60% QQQ; 20% QLD 2x leverage; 20% cash; smart rebalancing. The worst maintenance ratio is 138.07% (3)
Situation 1: 50% QQQ; 25% QLD 2x leverage; 25% cash; worst risk rate is 150.09% (2)
Situation 3: 40% QQQ; 30% QLD 2x leverage; 30% cash; smart rebalancing. The worst maintenance ratio is 162.11% (1)
Situation 4: 40% QQQ; 30% QLD 2x leverage; 30% cash; mechanical average rebalancing. The worst maintenance ratio is 97.98%(7) (Liquidated.)
Situation 5: 60% QQQ; 20% QLD 2x leverage; 20% cash; mechanical average rebalancing. The worst maintenance ratio is 102.79%(6) (Liquidated.)
Situation 6, 80% QQQ; 20% cash; mechanical proportional rebalancing. Worst maintenance ratio (discomfort) (4)

Situation 6: 80% QQQ; 20% cash; mechanical proportional rebalancing. Final net worth US$229,000 (1)

Comparison of the pros and cons of minimum net worth
Situation 1: 60% QQQ; 20% QLD 2x leverage; 20% cash; smart rebalancing. Minimum net worth US$120,000 (5)
Situation 1: 50% QQQ; 25% QLD 2x leverage; 25% cash; smart rebalancing. Minimum net worth US$150,000 (3)
Situation 3: 40% QQQ; 30% QLD 2x leverage; 30% cash; smart rebalancing. Minimum net worth US$180,000(2)
Situation 4: 40% QQQ; 30% QLD 2x leverage; 30% cash; mechanical average rebalancing. Minimum net worth (liquidated midway.) (6) US100,000
Situation 5: 60% QQQ; 20% QLD 2x leverage; 20% cash; mechanical average rebalancing. Minimum net worth (was liquidated midway.) (7) US$78,000
Situation 6, 80% QQQ; 20% cash; mechanical proportional rebalancing. Final net worth US$229,000 (1)
Situation 7: Completely invest 100% in QQQ and sell stocks every time. Final net worth US$125,000(4)

Situation 1: 60% QQQ; 20% QLD 2x leverage; 20% cash; smart rebalancing. Minimum loan amount US$264,000(3)

Comparison of the advantages and disadvantages of the minimum loan amount
Situation 1: 60% QQQ; 20% QLD 2x leverage; 20% cash; smart rebalancing. Minimum loan amount US$264,000(3)
Situation 1: 50% QQQ; 25% QLD 2x leverage; 25% cash; smart rebalancing. Minimum loan amount US$297,000 (2)
Situation 3: 40% QQQ; 30% QLD 2x leverage; 30% cash; smart rebalancing. Minimum loan amount US$330,000 (1)
Situation 4: 40% QQQ; 30% QLD 2x leverage; 30% cash; mechanical average rebalancing. Minimum loan amount (liquidated midway.) (6)US$194,000
Situation 5: 60% QQQ; 20% QLD 2x leverage; 20% cash; mechanical average rebalancing. Minimum loan amount (liquidated midway.) (7) US$185,000
Situation 6, 80% QQQ; 20% cash; mechanical proportional rebalancing. Minimum asset amount US$229,000 (4)
Situation 7: Completely invest 100% in QQQ and sell stocks every time. Minimum minimum asset limit US$125,000(5)

Situation 6: 80% QQQ; 20% cash; mechanical proportional rebalancing. Minimum net worth US$229,000 (1)

Minimum loanable balance (cash flow)
Situation 1: 60% QQQ; 20% QLD 2x leverage; 20% cash; smart rebalancing. Minimum loan balance US$35,000(5)
Situation 1: 50% QQQ; 25% QLD 2x leverage; 25% cash; smart rebalancing. Minimum loan balance US$68,000 (4)
Situation 3: 40% QQQ; 30% QLD 2x leverage; 30% cash; smart rebalancing. Minimum loan balance US$100,000 (3)
Situation 4: 40% QQQ; 30% QLD 2x leverage; 30% cash; mechanical average rebalancing. Minimum loanable balance (Liquidated.) (6)-US$40,000
Situation 5: 60% QQQ; 20% QLD 2x leverage; 20% cash; mechanical average rebalancing. Minimum loanable balance (Liquidated.) (7)-US$43,000
Situation 6, 80% QQQ; 20% cash; mechanical proportional rebalancing. Minimum net worth US$229,000 (1)
Situation 7: Completely invest 100% in QQQ and sell stocks every time. Minimum net worth US$125,000(2)

Table 1

The current situation is that the leveraged fund year is increased by US$2.85 million 138% US$120,000 US$35,000 60% 20% 20% Half of the leveraged fund value is transferred to cash 16 5

(2) (4) (5) (5)

The current situation is that the leveraged fund year is increased by US$2.53 million 150% US$150,000 US$68,000 50% 25% 25% Half of the leveraged fund value is transferred to cash 12 3

(3) (2) (3) (4)

Situation: Current year-to-year leveraged fund year increase: US$2.22 million 162% US$180,000 US$100,000 40% 30% 30% Half of the leveraged fund value is transferred to cash 10 1 three (4) (1) (2) (3)

Pledge borrowing strategy

50%-40% 00662
25%-30% 00864B + stock-pledge borrowing (excluding credit and housing loans.)
25%-30% 00670L + stock-pledge borrowing (excluding credit and housing loans.)
First separate the cash and 00670L tied to the stock-pledge loan, and then the remaining 60% 20% 20%
In the year of increase (no matter how much the increase is), at the end of December of that year, half of the increase in value of 00670 L (QLD) in that year will be transferred to cash.
In a year of decline (no matter how much the decline is), at the end of December of that year, take out the annual living expenses from cash and invest them in 00670 L(QLD)

Assets 3 million US dollars; pledged loan 400,000 US dollars example

Asset allocation
, set aside US$400,000 in cash equal to the pledged loan amount (the amount of pledged loan.) and US$400,000 in leveraged funds

1. The total cash position is 400,000 plus 550,000, which is 950,000.
1. Equivalent 2x leverage position 950,000
1. Unleveraged Fund part 3 million-950,000-950,000=1.1 million.

The riskiest setup is pairing a leveraged fund with cash and using mechanical average rebalancing.

Pledged borrowing, the higher the leverage and cash, the lower the risk.
The higher the leverage and cash, the lower the final total assets.
The risk of not borrowing is low, but the assets will hardly grow.
Mechanical average rebalancing, any improvements?

What improvements can be made to mechanical average rebalancing?

In Situation 4 and Situation 5, the final total assets are relative, but unfortunately they were liquidated midway.
Investment is what I said, the biggest risk in investment is GAME OVER!
Situation 4 and 5: Situation 4 and 5 were short US$100,000 in cash at liquidation
If you can allocate assets in situations four and five, and add another $10,000 in cash (10% of retirement assets), you can get through the difficulties.
That is, to avoid being liquidated and bankrupt, the retirement preparation is 55 times the annual expenses.

Among them, 10% will never move or be rebalanced. They are prepared to reach the lowest point and will not be liquidated.

###, prepare to exchange the pledged loan amount for an equal amount of cash of 400,000 (pledged loan amount.); additionally invest in leveraged fund of $400,000

Example

Assets of 3.3 million US dollars; 400,000 US dollars of pledged loans have been pledged, and the leveraged fund has been rebalanced without any thought. $300,000 is now in permanent form, immovable and unbalanced.
Asset allocation
Prepare to exchange the pledged loan amount for an equal amount of cash of 400,000 (the amount of the pledged loan.); in addition, invest in a leveraged fund of $400,000

1. The total cash position is 400,000 plus 550,000. Plus $300,000 (cannot be used for rebalancing.) Reserve cash for liquidation prevention. Total $1.25 million
1. Equivalent 2x leverage position 950,000 ($400,000 plus $550,000.)
1. Unleveraged Fund parts 3.3 million-950,000-950,000-300,000=1.1 million. beta 0.9

It’s wonderful and happy that the market is rising every day🍂🌷🌹🌸🌼🌺🌻 🌞💫✨🌟🌈🌈❤

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00454 Asset Allocation Leverage Pledge Cash Ratio and Smart Rebalancing Method rev 2.0 January 20, 2024 CLEC Investment and Financial Management Channel

Document Text

Pledge borrowing strategy

Assets 3 million US dollars; pledged loan 400,000 US dollars example

What improvements can be made to mechanical average rebalancing?

Table of Contents

00454 Asset Allocation Leverage Pledge Cash Ratio and Smart Rebalancing Method rev 2.0 January 20, 2024 CLEC Investment and Financial Management Channel

Document Text

Pledge borrowing strategy

Assets 3 million US dollars; pledged loan 400,000 US dollars example

What improvements can be made to mechanical average rebalancing?

Table of Contents