No, I meant what I posted - if they are long some real stars, it’s possible that those names could outperform the S&P 500 Put premium losses in a market rally. That’s the entire premise of a well engineered relative value portfolio - which is what Bridgewater now has.
SunTrader, If the market crashes by 50% tommorow , I will continue buy every two weeks. I will actually be buying at low prices so even better for me.
Comprehension. You are merely rewording my statement as an interrogatory. “if they are long some real stars, it’s possible that those names could outperform the S&P 500 Put premium losses in a market rally.”
.... and NQ Nasdaq and India Nifty broke the record and price continue to go up. NQ RECORD HIGH AT 8420 !!!!! Always trade with flow of river, with wood grain, with trend. don't do kamikazae against the flow trading. trade based on what the chart tells you, not what you hope will happen.
SunTrader, That is right man, this is what everyone does man. A few people I work with already got millions in 401k in their late 50s from doing this. Just regular people too. Warren Buffet even suggest people do it. You can get quaterly dividends too. Yes, you buy the market even if pigs are falling from the sky. You buy when its up and down. Do these two things, so you are secure in the future finically: 1. Read my post below and start investing in the S&P 500 index monthly or bi weekly. Just buy and do not think. 2. Day trade or/and work a full time job. Do both until you have millions of dollar! https://www.elitetrader.com/et/thre...coming-market-drop.338070/page-8#post-4968252
HEDGE FUNDS Dalio denies Bridgewater is betting big that markets will fall Billionaire investor takes to Twitter to dispute WSJ report of $1.5bn bet By Mark Decambre November 25, 2019 6:39 am GMT “I want to make clear that we don’t have any such net bet that the stock market will fall.” That is Ray Dalio, founder of the world’s largest hedge fund, Bridgewater Associates, disputing elements of a Wall Street Journal report on Friday that indicated his fund was putting on a $1.5bn bet that global stock markets would drop precipitously by March 2020. However, Dalio took to Twitter to attempt to disabuse anyone of the notion that this reflected an outright bearish outlook for markets. The Journal said the reported investment would represent about 1% of Bridgewater Associate’s $150bn in assets. Citing people described as familiar with the investments, the paper said the investment was made up of put options — derivative contracts that give investors the right but not the obligation to sell an asset at a specific time and price. Bridgewater had explained to a Journal reporter, Dalio said via Twitter, “that to convey us having a bearish view of the stock market would be misleading, but it was done anyway.” It is not uncommon for big investors like Dalio to purchase options as a way to hedge their portfolios, or simply to make purchases to take advantage of disparities in market trends. For example, one measure of market expectations for falls in the coming 30-day period, the Cboe Volatility Index, declines as markets rise and vice versa, and has recently been well below its historic average of around 19, implying that investors have grown complacent about a drop in equities as the Dow Jones Industrial Average, the S&P 500 and the Nasdaq Composite Index all trade near record levels on hopes that China and the U.S. will strike at least a partial trade pact in the coming weeks or months. That dynamic has seen the VIX, often referred to as Wall Street’s fear index, lose half its value so far in 2019, according to FactSet data. But that also means that buying insurance in case of a downturn in the market or expecting risk to pick up even slightly might make for a profitable play for hedge funds like Dalio’s, experts say, while not entirely reflecting a bearish view of the markets in the coming months. That could be the point that Dalio is trying to drive home. In other words, he isn’t disputing the investment but may be taking issue with how it is being characterised. Bridgewater representatives did not immediately return MarketWatch’s request for further comment. The Journal did note that it could not determine why Bridgewater had made the investment. “Several clients said it may simply be a hedge for significant exposure to equity markets the firm has built up. Funds often hedge, or take offsetting positions, against other exposure to protect against losses,” the report said. However, even if Dalio were to be making a bearish bet on the market, those bets don’t always pan out for the so-called smart money on Wall Street. For example, the Journal reported back in 2016 that George Soros, who looks after some $30bn via his Soros Fund Management, bought gold and gold mining shares and sold stocks in anticipation of a rout in markets. However, it is not clear that the bet bore fruit for the legendary investor, who earned fame for successfully betting against the British pound in 1992. More recently, the Financial Times reported back in September that Paul Singer’s Elliot Management was tapping investors to raise funds for a $5bn war chest in anticipation of a “market meltdown.” To be sure, he has reportedly been trying to raise this so-called rainy day fund since 2017. Talk of efforts by hedge funds to time big equity-market drops come as the group has lagged behind the performance of the broader market. According to the Journal, Bridgewater’s macro fund has lost 2.7% this year through October. Another fund it manages, its so-called All Weather fund, is up 14.5% for the period. Meanwhile, the Dow has gained 19.4% in 2019 to date, the S&P 500 has climbed 24% and the Nasdaq Composite has advanced 28% over the same period.