Saylor's 'Stretch' yield product carries high risk
The guest argued that the 'Stretch' security promoted by Michael Saylor is highly volatile and structurally risky, functioning like a Ponzi-like scheme that relies on continuous stock sales to fund its 11% yield and buy Bitcoin.
The argument
The guest asserted that despite marketing claims of stripped-out volatility and safe, money-market-like yields, the security's principal is unguaranteed and already down 10%. He argued that the SEC is failing to regulate it due to political influence, leaving unsophisticated retail investors highly exposed.
The thesis, stress-tested
✓ What validates it
- ✓SEC launches an investigation or enforcement action against the product
- ✓The 11% yield is cut or suspended
- ✓The security experiences further sharp price declines below $90
▸ Risks discussed
- ▸Yield can be canceled at any minute
- ▸Principal is highly volatile and not guaranteed
- ▸Regulatory action could eventually occur if political protection shifts
Hear it yourself
"guest today, Peter Schiff, believes that both gold and silver are headed much higher ahead in the face of rampant central bank money printing that threatens to accelerate to address massive government debt and deficits in an era of rising inflation that Peter believes could completely wipe out the middle class."
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