4 ms·
Before you short, read the Big Short and imagine yourself as Michael Burry. Very often you can be short, right, and lose your pants because markets are slow to
by sulam 10y ago
Before you short, read the Big Short and imagine yourself as Michael Burry. Very often you can be short, right, and lose your pants because markets are slow to recognize things that they are paid to ignore.
- finnh 10y agoYup. The markets can be irrational longer than you can be solvent. But there must be some arbitrage with derivatives or something, right? =)
- maxerickson 10y agoYou could go long on post sea level rise oceanfront properties. There's probably a few places where a narrow strip of land has enough of the right slope to be a win for quite a range of sea level increases.
- pixl97 10y agoAnd then some idiot will scam the taxpayers in to building a large seawall miles out from your location, leaving you high, dry, and broke.
- maxerickson 10y agocjlars already brought up a similar strategy with less sensitivity to sea level changes and less sensitivity to interventions. Maybe the best climate change hedge is investing in low carbon power production. (incrementally) Good for the climate, benefits if things go worse than expected.
- acchow 10y agoNo, that's exactly the problem. If you're betting on the market's irrationality fixing itself, you better be able to weather the storm of however long that takes.
- bronson 10y agoVery true. And the Army Corps of Engineers might decide to build some levees and pumping stations, delaying the reckoning indefinitely.
- yardie 10y agoThe sea water is coming up through the ground. It's not pouring over a dike.