Do not attempt to give me advice or suggest market stratagem. “The Fly” could give two fucks and a gay giraffe about your opinions or machinations. Just know, you giving me advice is equal to the bat boy giving advice to Ty Cobb, and shit. Fuck around and I’ll drop kick you in the chest, with my spikes on.
In other news, I am all about betting against global infrastructure plays now. I don’t believe it. It’s all Hollywood.
Stocks like [[ACM]], [[JEC]], [[FWLT]], [[FLR]] and [[ABB]] are in bubble mode; and I have a pin.
Just in case you are wondering, I am not diversified. We’re in def con 5 mode. There is no need for asset diversification, when shit is moving in a convoy lower. I know that is a very unorthodoxed strategy; but I believe it is prudent.
I can’t be saddled with 100 positions while the market is coughing up blood, falling all over the place. My approach is to have no more than a dozen core or trading positions, while keeping a large cash horde available.
My positions include both long and short. In order for my hedges to be effective, they must have some sort of inverse relationship to one another. Over the past 6 months, I have been long crude/short banks. At the present, I am short infrastructure/long rig makers. However, my largest position is cash.
If done right, a hedged portfolio can have far less risk than a dumb ass diversified one. This, as you know, is a major shift in my investment philosophy. For many years I was emphatic about sector diversification, using the strictest guidelines. Nonetheless, as the market changed, so did my opinion on optimal money management methods.
With the market shooting higher here, I do not want to get in front of it short. We can easily rally 300-500 points, before the next leg down. Instead, I will bide my time, throwing water balloons at my trade/servant, while nibbling (not biting) at [[RIG]], [[PCZ]], [[FXP]], short [[JEC]], short [[MXB]] and short [[CAT]].
NOTE: I covered my [[PACW]] short.If you enjoy the content at iBankCoin, please follow us on Twitter