You sold the dip?
No, sold mostly at highs. There is a reckoning coming. Consumer debt is way beyond what is sustainable, mortgage rates are about to crush the housing market. It’s a house of cards right now. Fed shows no signs of rational behavior and we continue to ignore supply side energy initiatives that would help. Meanwhile, my money market is yielding over 5%.
Stonks only go up. Except when they dip. Thats when you buy.
Finally some rational advice. The rest is posters puffing out their chests thinking they actually know something. If you're not playing the volatility, you're not really playing, you're just gambling. This isn't your grandmother's market.
If stocks are your thing then short them all.
In gambling you know the odds.
I had a grad level class at UConn on valuing Options and Futures. Lots of calculus. Back then you could predict the prices accurately and it was mostly about arbitrage opportunities to keep the market honest. All the math is gone. Rational behavior is gone. Just rampant speculation. You try relying on those valuations now and you'll get killed.
Anyone who is actively buying and holding stocks now is taking a huge risk. Talk about gambling.
Why?
Because the market has basically gone straight up since 2009, even the Covid years were very mild in terms of selling. The VIX is at an all time low. When the balloon pops I don’t want to be anywhere near Wall Street, or at least balance your long holdings with some shorts or buy shares in a bear market fund, or buy gold, silver, palladium etc.
Good grief man. Metals suck, although Palladium is at least useful. There are commodities that may be smart, but precious metals haven't been a good hedge in decades. Equities have held up in part because everything else is even worse.
Lol, the stock market has basically gone straight and to the right since 1940. Look at the numbers. Yes there are short downturns, but you can draw a line straight up and to the right. Plot that against the inflation adjusted value of the dollar and tell me how you plan to keep up with rising costs if you don’t invest in stocks.
Of course it’s gone straight to the right unless you’re living in a time machine. Lol. Time does move forward last I checked.
That’s precisely why now’s the time to buy them. With interest rates going up bonds and treasuries are attractive. Or like I told the other dumb dumb just find over bought stocks and sell them short. You do know how Joseph P Kennedy made the family fortune? It wasn’t bootlegging either.
Options are not complicated, they’re actually quite simple. Both “put” and “call” options are contracts that give the trader the option to either sell his holdings at a price above the current market price (a put), or to purchase shares at a price that’s quite a bit under the current market price.
What part of my MBA level finance class at UConn on them made you think I didn’t know that? Valuing them is not simple.
