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Dow plunges 1000 points

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Re: Dow plunges 1000 points

#81
post #78

Earlier quoted context omitted.

Short Overstock. It moves very closely in align with crypto.

Why is that? Do they have exposure to crypto?

Yeah, they've made it a point to emphasize that they're working on crypto / bitcoin related things[1].

1: https://www.investopedia.com/news/overstock-goes-all-bitcoin...

Re: Dow plunges 1000 points

#82

Earlier quoted context omitted.

Seems unnecessarily reckless to put almost all of your net worth into a single stock.

BRK.B is closer to a mutual fund than a "single stock"

It's also has a single Board of Directors, meaning there is still a single point of failure.

It's not like putting all of your money on Tesla, but it's still riskier than a mutual fund.

Re: Dow plunges 1000 points

#83
post #42
post #2

Call me old fashioned but it's a nice change of pace to see news about traditional market indexes crashing rather just crypto currencies.

Well, you've got both today :) BTC hit a daily low of 6600 at about the same time that the Dow bottomed out.

It’s important to qualify that BTC’s “daily low of $6600” is actually only an 80 day low, and a price that was an all-time high on Nov 1st. The DJIA ”bottoming out" is so far just a return to prices from just over a month ago.

There’s a lot more room to go down.

Re: Dow plunges 1000 points

#84
I was just reading:

https://static1.squarespace.com/static/5581f17ee4b01f59c2b15...

tldr; * The Global Short Volatility trade now represents an estimated $2+ trillion in financial engineering strategies that simultaneously exert influence over, and are influenced by, stock market volatility

* Since 2009 Global Central Banks have pumped in $15 trillion in stimulus creating an imbalance in the investment demand for and supply of quality assets

* Last month Austria issued a 100-year bond with a coupon of only 2.1%(6) that will lose close to half its value if interest rates rise 1% or more.

* Amid this mania for investment, the stock market has begun self-cannibalizing... literally. Since 2009, US companies have spent a record $3.8 trillion on share buy-backs financed by historic levels of debt issuance.

* Every decline in markets is aggressively bought by the market itself, further lowing volatility.

* Volatility is now at multi-generational lows... Volatility is now the only undervalued asset class in the world. Equity and fixed income volatility are now at the lowest levels in financial history.

Re: Dow plunges 1000 points

#87

Unprecedented growth leads to unprecedented correction. This is profit booking but huge players. The market will stabilize and start rising again. The fundamentals are still strong

The efficient market hypothesis would like a word with you...

Re: Dow plunges 1000 points

#90
post #31

Earlier quoted context omitted.

I’ve been watching for a sell signal for about 6 months, and I also got (mostly) out this morning.

There are other strategies to protect long positions if you have cash or an appetite for risk, this allows you to realize the gains from holding during the entire runup. It does require a good exit strategy for whatever hedge you choose.

Do you want to list some of the ones you’re thinking of? I’m trying to level up on hedging strategies for retail investors.

I was thinking of buying VIX on Friday, and am kicking myself for missing out now.

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