The prudent can still thrive during stock bears. The coming S&P 500 downside can be directly bet on with puts in the leading SPY SPDR S&P 500 ETF. Investors can also use SPY puts to hedge their long stock investments. But since the vast majority of stocks get sucked into bear markets, a far better option is selling investments and parking capital in cash. Cash is king in bears, going beyond preserving wealth. Investors who wisely go fully in cash early in a bear can literally buy back twice as many shares in their investments after the bear runs its course and cuts stock prices in half. Then they can use this much-larger base to rapidly multiply their wealth in the next bull. And gold is even better, because unlike cash it it rallies as falling stock prices kindle gold investment demand for portfolio diversification. Just like during the last two cyclical stock bears that cut the markets in half in the early 2000s and again in the late 2000s, Wall Street is going to deny this current selling is a new bear all the way down. Since it earns vast percent-of-assets management fees, Wall Street’s mission is to keep people fully invested no matter what. In order to understand what’s really going on, you have to cultivate contrarian intelligence sources.
For those who wish to swim in your own delusions be my guest! I am just a messenger! Message received? Nope!
TopHat, are you selling something? because if you are then just come right out and offer it up. Because it sure looks like you are trying to make sense of the market and have people think you understand them. But then again... Maybe you should learn a few things from those of us that do not try to understand so much the WHY of the market but instead focus on HOW we can make money from it. Trade what is in front of you not what you want it to be or believe it should be. As many have said...the market can remain irrational a lot longer than you can remain solvent. Good luck
All I know is one day this thread will appear in the Hall of Fame while you will get another alias to bully smart sounding civilized posters. Get some Spy Puts and gold today!
I don't have any other alias. Just this one. And I don't live my life on here. I only post sporadically. I focus most of my time on my full time career, family, and making money in the market. It seems you are the one with delusions of grandeur hoping for a Hall of Fame thread with these proclamations. Anyway, I truly do wish you luck in trading. I will stop posting in your thread now. If others find value in it then it will become a Hall of fame thread. If not it will just die off.
Rubberbird is a real blast from the past. Edit: From a brief search, it appears Rubberbird hasn't posted in 10 years. I do see that Buy1Sell2 was around back then...Time sure does fly.
Sorry, couldn't help myself....one last post here. We closed at almost the ABSOLUTE high of the day. And this is not bullying. This is simply stating a FACT.