This post blew my mind! Very candid.
The Covid crash did turn out to be a fantastic buying opportunity. But the problem is that it was a leap of faith. The sell-off occurred across all markets because no one knew how long-lasting and deep a correction it would be. Everything bounced back quickly because central banks embarked on a monetary policy experiment the world had never seen before.
I wouldn't have gambled with more borrowed renovation money than I could afford to lose even if had known that the odds were 90% in favor of winning.
Your friend going to the wealth advisor and asking her about Bitcoin was a mistake. He should've known what she was going to say. Asking a wealth adviser at a fucking bank was equivalent to going online to seek out Charlie Munger's comments on Bitcoin. If he was unmarried and losing 10% of his equity on a home he just sold would have not put a marriage to a risk avoidant no coiner at risk then he really should've taken his chances because of the upside potential. If you're an unmarried man, you're better off taking chances anyway. That's the best way to make use of your time as an unattached man.
Thanks - it was fun to write - serious stuff, still though :)
It all is a leap of faith - but also there is calculated risk based on experience. i think anyone with some to spend, bought in.
I agree, but the 10% I was planning would have been possible to gain back over time from other areas and the loan was to last for a year or more of renovation work - I had time and two jobs on my side. Using the cash immediately wasn't a long-term risk - but it gave me opportunity.
He did - but he would have had to clear expenditures with his wife - she would be much less likely than mine to say yes :)
This is an interesting view and one I think I hold too - though I have been married a while now :)
Ah, your friend is chained to an even heavier ball than you, then? :D
Indeed, it seems that the risk was well calculated in your case. Loss recoverable but win substantial.
Definitely!
There is no way I will risk anything too heavy with my family involved - but this was calculated for sure.