Although I have traded since 1999, and owned stocks for over 30 years, today I bought in bulk Federal Bonds, specifically 7 year and longer dated 20 year bonds.
Why? If the market falls, I expect people flooding to bonds for protection. Yields should plummet to potentially negative territory. I will sell these bonds if this happens.
Federal bonds yield 10x leverage, so you can buy 400K federal bonds with as little as 40k!The result will be if I am right, there is a multiplier effect that will happen.
I sold off all my extra crypto, reduced my gold miner positions, leveraged up my short positions.
I may sell the rest of my positions and buy more bonds and go into cash.
After hours the S&P 500 broke to the DOWNSIDE. Although it isn't official a bear until we break a bit lower.
A break below 3787 is really bad for the S&P 500. A close below that I believe we have begun a multi month, if not multi-year bear. All assets will go down EXCEPT bonds, which should appreciate as people run to bonds.
Good luck!
No comments:
Post a Comment