Video Overview

The writer says most financed positions were closed after following earlier advice. Although selling gave back the previous year's profits, the writer now feels more secure and sleeps better. The letter recalls being overly optimistic and approaching forced liquidation, then asks about reorganizing accounts in mainland China and Hong Kong after learning that some leveraged ETFs cannot serve as bank collateral. Rather than forecasting the market, the speaker puts reducing leverage and avoiding forced sales first. He also presents 70/30 or 60/40 allocations and limited use of leverage during declines as case-specific possibilities. The discussion is a reflection on risk, not allocation advice from this site.

Key Takeaways

• The writer gave back prior profits while closing most financed positions but reports better sleep and less psychological pressure afterward.
• The writer is examining cross-border accounts and collateral arrangements after finding that some leveraged ETFs are not accepted as bank collateral.
• The speaker prioritizes cutting leverage when forced liquidation is near and discusses lower-leverage allocations only as case-specific options.

Chapters

About 00:00:15 · After reducing financed positions

The writer describes selling leveraged holdings, giving back profits, and experiencing less psychological pressure.

About 00:00:42 · Cross-border accounts and collateral limits

The letter covers assets in two jurisdictions, bank collateral restrictions, and questions about leverage.

About 00:01:54 · Reduce leverage before adjusting allocation

The speaker prioritizes avoiding forced liquidation and discusses 70/30, 60/40, and limited leverage in this case.

Related Topics

margin liquidation, deleveraging, share-backed lending, cross-border accounts, 70/30 allocation, 60/40 allocation, risk control