Several things to discuss, chiefly the port strike. The last time we had one of consequence was July 1971, and it lasted 134 days. During that time stocks like $DIS, $MMM and $IBM got hammered due to logistics, but shares of $MCD, $MRK, and $PG did very well.
If this strike were to last long, you’ll want to be long stocks that are domestic and now reliant upon shipments for supplies.
Markets have collapsed lower today on fears of war, rumors and fears. We have been at this a long time now and those fears have gone largely unwarranted, mostly because no one is able to displace American dominance.
Nonetheless, I had to scramble this morning to reduce my beta, as I was positioned for more grandiosity. I went from a beta of 1.6 to 0.4, hedged with $SOXS, festooned with losses of 75bps to start October.
No worries. We’ll get them back; but we must be careful when navigating large spikes in volatility.
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