tRump’s trade wars and pointless tax cuts, industrial outputs sloping down, Europe sluggish, stock/bond volatility, massive individual, government and corporate debt, interest rates already low. This could get ugly.
Taking my coffee this morning and watching the stock market tumble (I am already out) and I thought WTF. Bought a few gold shares (GLD) and held them for a mere 10 minutes and made $346. That’s $2,000 an hour. I don’t seriously day trade, but what a rush.
I was a hands off 401k investor for 30 years because my first mentor. a Spanish Jew from NYC literally slapped the side of my head when I told him I was not participating in the company 401K plan. I took any fatherly tidbits of advice I could get very seriously. We didn’t have a web full of advice to filter through. Newsprint or casual conversation and some luck, I guess. I don’t know anything about a bear market other than gold and bonds because I was young enough to just ride out the last recession.
The only advice I ever heard about stock trading is that people seriously under estimate the risk involved (especially long term investments). Day trading is a bit of a different game cause at the end of the day your money is not all in a stock that could go bust the next morning. But the advice was to never put most of your eggs in that basket. I think it makes a LOT of sense unless you love high risk bets and can handle a potential big loss.
Maybe time to look into short selling stock. Only, which stocks? Many stocks are so expensive that it’s hard to get in on the trading. Banks, Amazon, etc. So, you need to figure out which smaller stocks to try to play.
You don’t have to figure anything out. If you are convinced the market will tank you can sell the indices short. All ya need is instability, bad economic forecasts, Trump plans a coup, significant terrorist attacks particularly if they are coordinated. And since the market has freaked it can easily drop like an elevator. It is a sick world. Misfortune for some is opportunity for others.