ecoinometrics Profile picture
Jul 17, 2020 4 tweets 5 min read Read on X
The #Fed Playbook
Jul. 16, 2020

1/ After a few weeks of decline the Federal Reserve is adding a small $38 billion to its balance sheet.

The emergency measures are almost gone so we are now getting a good old regular asset purchase program. ImageImageImage
2/ We are entering the plateau phase of the #Fed playbook.

In 2008 during this period the balance sheet stayed around the same level until the #FOMC put in place a more permanent #QE program. Image
3/ Don't expect the #Fed balance sheet to go back down to "normal" levels, the #Stonks market cannot afford that... #Brrrr Image
4/ So that's it. For now few people care about the negative consequences of all that. But you should!

Start #StackingSats and be prepared.

Problems: #FOMC #QE #CentralBanks
Solution: #Bitcoin

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More from @ecoinometrics

Dec 20, 2022
If you had dollar cost averaged the SP500 between 2010 and 2020 you'd have made almost twice as much as doing the same thing between 2000 and 2010.

There is always a luck component in the markets. You can't control that. Your job is to play your cards as best as you can.
Here is what you get from DCA the SP500 from 2000 to 2010 to the tune of $150 per week. Image
Here is what you get from DCA the SP500 from 2010 to 2020 to the tune of $150 per week. Image
Read 4 tweets
Nov 4, 2022
The spread between the 10yr and the 2yr US Treasury yield has never been so negative over the past 30 years. Image
The yield curve is actually inverted all the way down to the 10yr vs 3mo spread. Image
The yield curve hasn't been inverted to such degree for a long time. This is a sign that the bond market is anticipating a recession. Image
Read 5 tweets
Oct 6, 2022
Facts about dollar cost averaging:
• How often you DCA doesn’t really matter.
• There is no such thing as a best day to DCA.
• You can lose money with DCA, so choose your asset wisely.

More details 🧵 Image
You can dollar cost average an asset daily, weekly or monthly, over the long run it doesn’t matter.

The only thing that matters is that you are consistent.

Just do it. Image
You might want to “optimize” your dollar cost averaging strategy by picking the best time to buy.

This is pointless. Pick any day of the week to DCA, that makes virtually no difference over the long run. Image
Read 6 tweets
Sep 18, 2022
The Federal Reserve is messing up with the housing market.

The goal: make the average US citizen poorer.

Here is how they achieve that. 🧵
US families typically have the majority of their wealth tied to their home.

As of the last census in 2019, the family's primary residence represents on average 66% of their net worth.
If two third of your net worth is in your house a decline of the real estate market can make you significantly poorer really fast.

That's what the Federal Reserve is trying to achieve.
Read 11 tweets
Sep 17, 2022
Over the last couple of years home prices have done a pretty good job at keeping up with inflation.
At least housing has done a much better job at beating inflation than gold.
But who knows how long this is going to continue. 📉🤔
Read 4 tweets
Sep 4, 2022
Sorry to break it to you, but dollar cost averaging isn’t the ultimate investment strategy.

If you are looking to maximize your return on investment, look elsewhere.

Let's see why and how to improve it.
You all know what dollar cost averaging is. Pick an asset:
- Buy a fixed $ amount of that asset.
- Do that at regular time intervals.

Continue until you are tired of it.
If you started dollar cost averaging the SP500 at $100 per week in 2012 you would now have:
- Deployed $50k.
- For a profit of $27k.
- Or a ROI of 54%.
Read 12 tweets

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