Monthly Archives: March 2020

End-of-quarter rebalancing

Stocks have been on a tear this last week and I just figured out why: End-of-quarter rebalancing. There are many pension funds and 401k’s with strict allocation rules by value in relation to stocks and bonds. They typically rebalance their … Continue reading

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Lockdown Rally – My Reactions and My Current Plan

This is the certainly the craziest market I’ve seen, and I came up with a rough thematic game plan.  This crisis started with over-leveraged markets at all-time highs, driven primarily by companies borrowing cheap to buy back their own stocks.  … Continue reading

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Bear market rally

I’m not going to explain anything here as I don’t have the time, but I figured I should write what I’m doing. I’ve been slowly accumulating puts in this bear-market rally in a few more things, DAL and SPY today. … Continue reading

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When should we see inflation?

There are many misconceptions about inflation and how it works.  You hear the voices calling warnings of inflation every time the federal reserve expands it’s balance sheet, and every time the government deficits grow – yet things don’t quite come … Continue reading

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Stock market cycles for beginners

People keep asking “Is this a good time to buy?  What should I pick up?  The prices are great, right?”  I’m going to explain a very simple framework for market cycles that should just make sense to you.  Step back … Continue reading

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In a time of opportunity, I won’t just wait it out

I’m a stock trader.  The price moments are incredible right now.  If I can’t make money at this point in time, then what kind of a trader am I?  Anyway, I decided to get more proactive about the situation. There … Continue reading

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Volatility creates opportunity

Right now, the markets are more volatile than ever.  We see large drops day after day with equally large bear market rallies interspersed.  It’s easy to just back away and wait it out, but there has to be a way … Continue reading

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Why I decided to sell

I just sold out of all of my stock holdings this morning.  100%.  No gold miners, no utilities, no staples – I sold it all.  Overall I can’t say I’m doing too bad … I’m down just under 20% from … Continue reading

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Creating a Covid-19 Resistant Portfolio

Yesterday I dumped off anything I had that would be directly affected by Social Distancing. This included anything related to oil, restaurant related plays such as Coca Cola or Budweiser (their grocery sales are much lower profit margin than restaurant/bar … Continue reading

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A brutal start to Monday’s trading

This pandemic crisis is still in its early stages. Last week everything seemed fine, now they’re locking down Europe and the US for who knows how long. The best roadmap we have is China, which is about to ease restrictions … Continue reading

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