I started back in April with a strong Covid play on both stocks and options. I have cleared a 10% return with very conservative moves. My mantra during this stretch since early April has been, "Vaccines are great, but folks need hand sanitizer now." Also, "what do people do with so much time on their hands while stuck at home?" Watching movies and playing video games comes to mind. Hint, hint.
On the bearish, put side of things, I have stuck with the basic mantra, "If there are properties, rent, lots of inventory, outdoor aspects to a business, run for the hills and short that S_ _ _ !"
This philosophy has worked reasonably well in the short term, while holding back on what look like bargains in the SP 500. Airlines comes to mind, yet I have not taken the bait....
However, today was really weird. The Fed comes out with statements basically saying that they have unlimited resources and the economy will forever be propped up. This is not cause for relief in my estimation. True, the US economy stands as one of the strongest if not the strongest on earth, but we are still limited in the sense that if consequences of this pandemic hang on for the long term, we might never be the same again. Once something stops or severely slows down, well, unless it rains (alot) again, there isn't going to be much fresh water to go around!
As a result, the DOW was up almost 1000 points today. Coupled with positive vaccination prospects from MODERNA (we have seen/heard this before from many companies) the DOW went into overdrive. I didn't believe the hype for a minute.
It seems that investors are: 1) Either stuck with old habits and/or 2) Completely jaded by the past four years.
The fact that many stocks bounced back over 50% since pre-Covid, tells me that it is already overpriced in general. Also, many P/E ratios are absolutely off the charts. Time to keep some cash, pick a choose wisely, and short that SH_ _!
On the bearish, put side of things, I have stuck with the basic mantra, "If there are properties, rent, lots of inventory, outdoor aspects to a business, run for the hills and short that S_ _ _ !"
This philosophy has worked reasonably well in the short term, while holding back on what look like bargains in the SP 500. Airlines comes to mind, yet I have not taken the bait....
However, today was really weird. The Fed comes out with statements basically saying that they have unlimited resources and the economy will forever be propped up. This is not cause for relief in my estimation. True, the US economy stands as one of the strongest if not the strongest on earth, but we are still limited in the sense that if consequences of this pandemic hang on for the long term, we might never be the same again. Once something stops or severely slows down, well, unless it rains (alot) again, there isn't going to be much fresh water to go around!
As a result, the DOW was up almost 1000 points today. Coupled with positive vaccination prospects from MODERNA (we have seen/heard this before from many companies) the DOW went into overdrive. I didn't believe the hype for a minute.
It seems that investors are: 1) Either stuck with old habits and/or 2) Completely jaded by the past four years.
The fact that many stocks bounced back over 50% since pre-Covid, tells me that it is already overpriced in general. Also, many P/E ratios are absolutely off the charts. Time to keep some cash, pick a choose wisely, and short that SH_ _!
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