Accredited investor status doesn’t matter for IPOs. If you have the right connections, you could buy, even if you are not an accredited investor.
It does matter for pre-IPOs, since those are not public offerings and thus not registered with the SEC. To do a securities offering that is not registered, the offering has to qualify for an exemption. Selling to only accredited investors is such an exemption (the other main one is selling only to foreign investors).
There is no accredited investor registration or certificate. It is the responsibility of the issuer to confirm that each investor is accredited (although they can allow investors to self-certify if the offering is done without any general solicitation).
I don’t see the connection, though. Like how does it ripple from crypto to the real economy? 2018’s rise and crash didn’t spill over at all AFAIK. I’m more worried about some sort of meme stock ripple effect that crashes everything lol
I don’t see the connection if housing prices drop a little. Like how does it ripple into the real econ—oh, I’m being told every major player on Wall St. and a really dumb insurance company had massive exposure to leveraged bets in a dark unregulated market, blessed by the ratings agencies, that assumed housing prices could never fall in unison.
But I actually worry more about every casual investor asking for options clearance. Seems like that has to end in disaster somehow.
FWIW - my thesis even before covid has been all this money printing would create a gigantic frothy market, and my exit was DOW 36k - because of the dumb book. Which I know makes no sense. But you have to pick some target. And that one would put me in pretty good shape to go conservative and coast the rest of the way to retirement.
I still think that’s going to happen, as we’re seeing signs of real froth.
But it could always get 50% frothier from here and the craziness last 5 years or more. We may be just at the start of the roaring 20s 2.0.
IMO being in the market right now seems way less risky than being out of it and missing out on all the froth.
What I’m curious to see is how the willingness of Congress to actually step up and provide fiscal stimulus does to the willingness of Central Banks (esp the Fed) to keep firing the money cannon. The hope is that fiscal stimulus will be done in a more egalitarian way, giving money to people who need it and will spend it rather than just inflating prices of assets which are already in the hands of people who… you know… own assets.
I think it’s good strategy as long as you can bail early enough if the acquisition/merger doesn’t happen. By the time you find out about it though it’s probably too late.
I know it’s early, and I know this is just another blog ad masquerading as an “finance article”, but here’s a candidate for hilariously dumb finance article of the year:
You’ll never guess what the biggest downside to paying off your mortgage is. Dude claims that without a mortgage, he’s no longer motivated to work himself to death and make so much money! Never mind that he already has a 3M net worth and 150K in passive income.
But my entire attitude slowly changed once I sent that final mortgage check. I stopped aggressively looking for new freelance consulting work. I went from taking on three contracts per month to just one. So instead of working 60 hours, I was only working 20 hours. At around $10,000 per contract, I was losing out on $20,000 of monthly income.
OMG how awful!
To reward ourselves for paying off the mortgage, my wife and I also took a month-long trip to Asia. We visited friends overseas and saw the Ruins of Angkor in Cambodia, then spent weeks camping in Yosemite. After that, we flew to New York for two weeks to watch the U.S. Open. We spent more than $10,000 on the entire trip.
Man, the downsides just keep getting worse and worse.
It was a lot of time off — so much, in fact, that I was behind by $50,000 on my goal to reach $200,000 in annual passive income. The plan was to grow our money so we could feel financially secure by the time we had a baby.
This is indeed a tragic tale.
If I could go back, I would have spent less time vacationing, and more time buying rental properties and investing in dividend stocks.
