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[-] z3rOR0ne@lemmy.ml 19 points 6 months ago* (last edited 6 months ago)

The rich capitalists haven't made money the traditional way for about a generation now. The majority of wealth is made on the real estate and stock market which is based off of speculation and expectations of perceived value that have little to do with actual value.

So they'll just keep making money off their own money.

A little secret, if you want to see how this works, look into how to make LEAP Options calls on the SPY ETF. Basically you can leverage some money by buying an Options Call on a safe bet like betting on the top 500 US companies via an Exchange Traded Fund. A LEAP just means that bet is LONG term,over the course of years. Unlike Stocks, Options require you to either cash out (exercise) your Options after a certain amount of time (weeks to years) with the option to "roll over" your option call by putting down money for more time if it didn't do well in that allotted time, essentially doubling down on your bet should your bet not turn as much of a profit as you wanted.

This bet can be risky, but if you place your bet on say , the S&P 500, you bet on the top 500 companies. And you're basically betting on them doing well over a certain time period (say the next 3 years). The key to this is that Options call allows you to acquire say 60% more stock than you could technically afford, but you can only hold it for 3 years. If those 500 companies do well over the next 3 years (highly likely, pensions, retirement accounts, 401Ks, IRAs all rely on the S&P or some variation thereof), you get the returns of those stocks, and you got to leverage 60% more stocks than you could technically afford all because you were willing to make that bet within a certain time limit.

Worst case scenario is the US goes into a recession that lasts those 3 years and you either lose your entire investment or you invest some more money (but not as much as the initial bet usually) to extend your Option call out for another period of time.

It's one of the many ways even the moderately wealthy can earn a hefty profit over legalized gambling. The strategy I've just described to you is considered one of the safer bets amongst stock bros I've talked with, and it's a real life Free Money Glitch that works as long as US economy line goes up.

Now imagine the insanity that goes on in actual Wall Street with actual dynamically changing algorithms and people who have devoted their lives to making more money out of existing money, and you start to realize that these rich fucks at the top can basically say fuck all to investing in companies that create actual value, they just need lower level investors to believe that paradigm still exists.

They don't rely on your pennies to stay wealthy, they've created the ultimate dream of capitalism, where money infinitely generates more money regardless of what's happening in reality.

[-] NoIWontPickAName@kbin.earth 7 points 6 months ago

You are encouraging random internet people to do this.

Most of them don’t have enough sense to pull off gambling on a scale like you are talking about, my self included

[-] sirico@feddit.uk 9 points 6 months ago

Ok so put it on black?

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this post was submitted on 11 Apr 2024
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