This pretty well sums up why I haven’t done anything over the last month. I don’t trust anything or anyone right now, other than a comfy 60% cash position and my own nerves.
And if I have to sit on that cash position for a year, doing nothing much at all, then watch me.
You should generally presume that the future will behave averagely from the present. But there are times when you are confronted with the extraordinary; times like the 3rd most significant decline in a key commodity on record. And when those times happen, you should chuck the ordinary and assume you are living in extraordinary times.
We saw the tech sector get run through last spring. Then the oil space. What comes next? Wherever we are, it’s best to believe that it will be anything but average.
After all, nothing else has been.
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15% cash
bought $PRU and $DB -insurance
and banks .Cash machines
Biotech is the next thing to get routed. I just don’t know if it’s going to be soon or if it’s still months away, but it’s going to be the next big thing to crash.
Rather than cash, I’ve been to buying up pipelines and other midstream players at good prices who don’t require capex to keep production up and can therefore defend the dividend instead.
Couple that will selling ATM covered calls for healthy premiums and it’s been relatively easy to ride this out and still make a nice profit.
terrific strategy