Nothing wrong with that. I have a mantra that I tell my mentee to repeat: “Long only, without margin, in a bull market.” I told her to sideline in October last year. She cheated a few times and got stopped out and hung on to a few losers too long. I have her repeat the mantra each time. She asked me when we will implement shorting stocks into the method. I said not until she makes a million with the method in a bull market. Have to learn to crawl before learning to run.
I've had a good run with enery. There's a bitcoin short ETF in Canada but the big moves seem to occur over the weekend. Have to admit I'm one of those who badmouth bitcoin and don't have a position. I see it's value as a medium of exchange but not as a store of value. Might trade some if it ever turns around.
We have the bear market. Bitcoin is the bear market on steroids. No Bitcoin ETFs here in the USA. I liked MSTR and SQ as proxies. For stocks I liked BA and DIS.
Michael Saylor insists that MicroStrategy is not at risk of liquidation despite the recent Bitcoin crash. The MicroStrategy CEO retweeted a May 10 post today in which he laid out the company’s financial situation. In the original post, MicroStrategy claimed that it would only be at risk of getting liquidated on a $205 million loan it received to buy Bitcoin if the asset fell below $3,562. Even if it did crash to the $3,562 level, MicroStrategy “could post some other collateral” to avoid liquidation, Saylor said on May 10. Bitcoin has had a shaky week after falling to its lowest level since December 2020. It’s currently trading at around $22,500. In response to the market volatility, Saylor has reiterated that MicroStrategy is taking a long-term view to its Bitcoin holdings. “When MicroStrategy adopted a #Bitcoin strategy, it anticipated volatility and structured its balance sheet so that it could continue to #HODL through adversity,” Saylor wrote, referencing the “HODL” meme that refers to “holding” onto coins through volatile market conditions. MicroStrategy is the largest independent publicly-traded business intelligence company in the United States. The company started investing in Bitcoin as a treasury reserve asset in August 2020, citing a weakening dollar and global macroeconomic conditions. According to its First Quarter 2022 Financial Results report, the company owned a total of 129,218 Bitcoin worth $2.9 billion at today’s prices as of Mar. 31, 2022. Its average purchase price is around $30,700, which means Bitcoin would need to fall another 27% for the firm to see a paper loss on its investment. Other documents also show that 19,466 Bitcoin from MicroStrategy’s stash has been pledged to Silvergate Bank for collateral on the $205 million loan it received to add to its Bitcoin reserves. The collateral value at the time was $820 million; at today’s prices it is closer to $440 million. 95,643 of MicroStrategy’s Bitcoin remains unencumbered, meaning the company still has over $2.1 billion to pledge as collateral. MicroStrategy’s stock (MSTR) is trading at $164.57 at the time of writing, up 7.79% on the day. Despite the uptick, the stock is 87% short of its February 2021 all-time high of $1,311.
You guys made me take another look at MicroStrategy. Tempted to buy the sell-off, but I just don't know what to do with the stock. No dividend payouts, and negative EPS. Things were much different when everyone panic-sold off OIL equities and Cathy Wood was saying how oil is going to stay below 6 bucks a barrel (or something like that). Of course, I dived into oil stocks... But I knew I'd be getting positive EPS and dividend payouts, even if they were temporarily reduced.
Alright, I'm tempted to do something Buffett says don't... 'don't waste money'. lol. Maybe I'll buy just one share @ $150 CAN so I can ride along with the drama. If she implodes, thats 130K bitcoins that will be liquidated into the market, causing a flash-crash we have not seen the likes of since the 2010 equities fiasco. So I should set limit-buys for BtC at those double-digit prices just in case it spikes down. I've missed a lot of these bottom-feeding flash-crash snatches over the years. If she holds... then it can work out as a great trade. So... this is how I can talk myself into a win-win situation. Haha..
Why? She and I are not going to lose any money. With interest rates rising we can stick the cash in a daily interest rate account and even make a little.
No matter how long bear market lasts? You are looking at recent past history. Look further back. I have no idea how long it will last. I just know the possibility exists that it may last a lot longer than most think it will.