Nailed it … I even lost my wedding Best Man to CoV yesterday after nearly a month on a vent. 66, three years younger than me. Godspeed Mr. Rick
Basically the "Big Short" of COVID-19. The only problem is that we don't yet have the end of the story! Imagine properly timing the pop... wow... you'll be a millionaire overnight.
If you are off by a few days you will get a margin call that you don't meet. You cover at the top. You may not have the resources or the gumption to continue trading. Think risk management, always.
Um... no? Let's say I short the SPY, attempting to time the pop. If I'm off by a few days, it will creep up a few dozen basis points, perhaps a full percentage point. Longer term I'd probably go down another 10% or more, but that's the bet... unless you're expecting a dramatic upspike in the SnP. ...so what would indicate a pop coming soon?
I wonder if Xi Xinping's "Common Prosperity" movement may somehow trigger the end. He's pushing it hard, and there's talk of change and bubble-popping out there.
“Far More Money Has Been Lost By Investors Preparing For Corrections, Or Trying To Anticipate Corrections, Than Has Been Lost In Corrections Themselves.” – Peter Lynch