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Re: bigworld post# 11315

Wednesday, 12/07/2016 9:55:21 AM

Wednesday, December 07, 2016 9:55:21 AM

Post# of 19856
Bigworld, >> 2213 on the S&P 500 is the shorting opportunity of a lifetime. <<


Stockman and Peter Schiff have been bearish for years, and while they're right the market will collapse again at some point, anyone who followed their advice by being permanently short would be in the poorhouse.

Looking at the range of bearish strategies, from very conservative to very risky -


1) Go fully to cash, wait for the collapse to happen, then redeploy back into stocks afterwards. This strategy safely preserves capital and avoid losses.

2) As above but go to cash in stages as the market continues to climb, then fully to cash.

3) Stay long stocks but fully or partially hedge your portfolio with puts when it looks like the collapse is starting. There is considerable timing risk.

4) Go fully to cash, then start going short in stages if the market keeps rising. Timing risk with losses as you wait, some Tagamet needed.

5) Go fully short and wait for the collapse. Extreme timing risk with large losses as you wait, very large supply of Tagamet needed.


If mis-timed, the #4, #5 strategies could provide worse results than just sitting in cash #1. Relying on timing the market correctly is the problem, even the so-called experts can't do it consistently.

On the other hand, being 8 years into a largely rigged bull market
does put the odds in your favor. Historically a crisis and market panic always happen eventually, and we're about due (maybe). On the other hand, with Trump we might get several more up years for stocks, which is not impossible - Dow 20,000, 22,000, etc.




























































































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