If you notice, I am purposely opting to avoid selling short, even though I think the market will trade lower. I am trying to remain focused here and not get caught up with the mixed emotions of being both long and short at the same time. For the day, I sold a little more, upping my cash position to about 45%—putting my current allocation at 45% cash, 45% equities and 10% treasuries.
The [[TLT]] trade is a very simple, low risk, bet. Essentially, it’s like cash, but better. If I hold it long enough, I will receive dividend payments. And, should the market get raped by zombies dressed in burlap, it will appreciate. Unlike past markets and trades, my current strategy revolves around lowering the beta, in order to preserve assets, so that I can buy stocks lower.
That’s the point.
As the European cow-fuckers trash their own currency, ours will appreciate, essentially making [[TLT]] a “safe haven.” I realize this is a 180 degree reversal of my previous prophecies. However, the future is always changing; therefore, I must change too.
Top picks: [[TLT]] , [[DRR]]