The Great "Decluttering" of 2023
With momentum negative, now is the time to be proactive about finding new long-term investment ideas... or just clearing out all the junk that surrounds you. Opt out and focus on what you control.
Download the PDF or just keep reading…
Dear Fellow Expat:
We sell calls on existing long positions to generate income when momentum goes negative.
We shift to cash and wait for the next wave of capital to reenter the market. A central bank may pump more money into the system. But we don’t try to “short the world.” I don’t like actively betting against U.S. companies – unless it’s Beyond Meat (BYND). More on that garbage stock tomorrow.
In negative momentum, we can buy hedges as we own with ProShares Trust - ProShares UltraPro Short QQQ -3x Shares (SQQQ) or the ProShares Short Russell 2000 (RWM).
And we wait to learn WHY momentum is negative. Typically, it involves a global liquidity challenge. A few challenges exist right now: China’s real estate market, the U.S. regional bank woes, and Japan’s Yield Curve Control plans.
When momentum is negative, we get out of the way – and treat the day to address other things building. Now that my wife and daughter are not in the house – I have turned my…
Keep reading with a 7-day free trial
Subscribe to Me and the Money Printer to keep reading this post and get 7 days of free access to the full post archives.