I closed down 2.2% today, even after hedging like crazy in order to stem the flow of blood protruding from my head. For the week, I am -0.16%, mostly due to being a professional and understanding how to invest with appropriate tact and decorum.
It’s important that we acknowledge several palpable items now.
1. Inflation is resurgent
2. Rates are going higher
These two facts REBUKE the idea of Fed pivot and pause and instead place a 50bps hike right back on the table.
Whilst this drop wasn’t exactly deadly, it was enough to warrant a hedge, so I went 20% SQQQ into morning. I don’t want to squander what I have achieved and I also don’t want to be glib about the decline in an attempt to persuade myself that easy money is still possible in this tape.
We had fun. We made fast money quickly. But it’s over now and things have instantly become arduous, so prepare for volatility and the idea of dramatically lower prices in the near term.
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Don’t bet against Joe Biden. He’s right on everything.
And inflation id a GOOD thing!
Mama always told me that mo’ money is a good thang.
I REALLY hope that was sarcasm.
Everybody is good at something. My specialty is sarcasm.
Inflation is your FRIEND. Your home value goes up, your wage or salary goes up, and stocks and returns on CD’s and bonds go up. The inflation goes away after a year or two, the benefits persist.