5 ms·

Ok, say you believe this is going to happen. What the hell can you really do?

by jcomis 8y ago

hmate9 8y ago
Buy property, bitcoin, gold.
nickik 8y ago
You can bet on the market going down. Just go to your banker and tell him to do it. The question is just, do you believe it?
- AnimalMuppet 8y ago
  "The market can stay irrational longer than you can stay solvent." Be very careful betting on the market going down. You not only have to be right, you have to be right soon enough.
  - nickik 8y ago
    I hate that statement. Because people who say it claim they were right based on it, when they were clearly wrong and just trying to excuse their failure. Saying 'at some point in the future prices might be lower' without a time attached to it is an intellectually empty statement.
    - appstateguy 8y ago
      The thing to understand about shorting is that your losses have no upper bounds. You short a stock at $100 and it goes up to $1,000, you now OWE $900. Here's [0] a story of a guy going to bed with $30k in his ETrade and waking up to a $106k debt call. [0] https://www.marketwatch.com/story/help-my-short-position-got-crushed-and-now-i-owe-e-trade-10644556-2015-11-19 https://www.marketwatch.com/story/help-my-short-position-got...
frockington 8y ago
Options on the SP500, good luck with that in a bull market though
icu 8y ago
Diversify. Try to have a portfolio of investments that include asset classes that will counter act any market falls.
AnimalMuppet 8y ago
Well... you can be in the stock market for the next two years. During those two years (under normal circumstances), interest rates should be rising. Two years from now, when the stock market is at its peak, sell stocks and buy long duration bonds. Hold those while the stock market tanks and interest rates go down. (Bonds increase in price as the interest rate declines; the longer term the bond, the bigger the price change.) All that's assuming that Bernanke is right both in direction and in timing. It also assumes that interest rates will do the usual thing this cycle which, given the strange stuff that the government is doing to intervene, may not be a good assumption. Note well: I am not a financial advisor, and this is not investment advice.

Ok, say you believe this is going to happen. What the hell can you really do?

by jcomis 8y ago

Ok, say you believe this is going to happen. What the hell can you really do?

hmate9 8y ago

Buy property, bitcoin, gold.

nickik 8y ago

You can bet on the market going down. Just go to your banker and tell him to do it. The question is just, do you believe it?

AnimalMuppet 8y ago
"The market can stay irrational longer than you can stay solvent." Be very careful betting on the market going down. You not only have to be right, you have to be right soon enough.
- nickik 8y ago
  I hate that statement. Because people who say it claim they were right based on it, when they were clearly wrong and just trying to excuse their failure. Saying 'at some point in the future prices might be lower' without a time attached to it is an intellectually empty statement.
  - appstateguy 8y ago
    The thing to understand about shorting is that your losses have no upper bounds. You short a stock at $100 and it goes up to $1,000, you now OWE $900. Here's [0] a story of a guy going to bed with $30k in his ETrade and waking up to a $106k debt call. [0] https://www.marketwatch.com/story/help-my-short-position-got-crushed-and-now-i-owe-e-trade-10644556-2015-11-19 https://www.marketwatch.com/story/help-my-short-position-got...

frockington 8y ago

Options on the SP500, good luck with that in a bull market though

icu 8y ago

Diversify. Try to have a portfolio of investments that include asset classes that will counter act any market falls.

AnimalMuppet 8y ago

Well... you can be in the stock market for the next two years. During those two years (under normal circumstances), interest rates should be rising. Two years from now, when the stock market is at its peak, sell stocks and buy long duration bonds. Hold those while the stock market tanks and interest rates go down. (Bonds increase in price as the interest rate declines; the longer term the bond, the bigger the price change.) All that's assuming that Bernanke is right both in direction and in timing. It also assumes that interest rates will do the usual thing this cycle which, given the strange stuff that the government is doing to intervene, may not be a good assumption. Note well: I am not a financial advisor, and this is not investment advice.