7net11: Cash is KING!

I have said it once and I will say it again. CASH is an asset. As we approach pre-Covid levels for the markets, let's remember that we were dealing with an overbought market to begin with.  P/E ratios were north of 24 on average for the S and P and many retail stocks had been heading downward for years. 

The only activity I am doing now is:

1) Long Puts: 3, 6, 12, 24 month expirations.

2) Long Calls: 1 - 3 months

3) Buying discounted shares 5 - 7% on average already in my long portfolio.

The weak dollar, low interest rates, and FED intervention are propping up these woeful conditions. Airlines are a classic example of bad chasing bad. Don't believe the hype. More than one airline could be bankrupt within a year. 

HOLD your cash. I know the temptation is there right now.  Sentiment is charged which is creating more volatility. The BIG money is playing/preying on this sentiment and cashing in up or down further complicating the situation.