Steven M. Sears
U.S. stock prices seem supported by a “smart-money” put.
Like the Bernanke Put, and the Greenspan Put of yesteryear, the smart-money put can be relied on to prevent stocks from falling too far. A put option offsets declines when associated securities fall, by allowing the owner to sell—”put” in options jargon—them to someone at a preset price.
Unlike the Bernanke and Greenspan puts, the smart-money put is harder to quantify, but it clearly exists, even if it wasn’t minted by a central bank.
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Analysis can turn into paralysis with hedging.
An argument that reducing positions to cash is “that penny saved” (is a cent earned) that obviates said hedged put.
Institutional investors seem hell-bent on Clam dust, and will send a direct money via bots to our political establishment every time they fail to sacrifice more of America’s “$avers” cash (which they deserve) to be churned into the bot volcano.
At the same time, the imprudent hedges absconded to Europe (e.g. Corzine). Damn shame (if you you hold an iota of morality).
WWND. No question What Would Nietzsche Do.