Postcards: What Would You Do In This Scenario? (Covid Edition)

Either I have COVID or the flu, so let's be very fast today... like a real postcard.

Market Update: As I noted in the Republic Risk Letter this morning, the S&P 500 SPDR ETF (SPY) hit overbought territory last week.

It wasn’t surprising to see selling at these levels. The markets have been on a four-week tear from oversold to overbought. Now, we await updates on inflation later this week. As I’ve said, it’s an excellent time to sell calls on existing positions.

Dear Fellow Expat:

The scenario went like this…

Imagine you’re a prisoner in the Tower of London.

The King of England has personally sentenced you.

And only four people know that you’re a prisoner in the structure.

The King. You. And two guards – ordered by the King – to stand watch for 12 hours per day, guarding you.

You need to escape, but the walls are fortified, and you have a chain on your leg.

Your only hope is to find a way to convince the guard to let you go.

Now, a few additional ground rules.

You cannot attack the guard because you are in a cell.

Screaming isn’t going to do you much good; in fact, it may harm yo…