51 ms·
I wouldn't suggest investing in short ETF or buy puts or anything like that if you don't know what you're doing and don't have to ask me about it. In past tigh
by lamontcg 4y ago
I wouldn't suggest investing in short ETF or buy puts or anything like that if you don't know what you're doing and don't have to ask me about it.
In past tightening cycles the Fed has had to hold interest rates elevated for around a year before a recession set in. If that happens again then we may see a dead cat bounce over the 6-12 month time period and everything may recover. You could wind up shorting the market right at a medium term low. The fact that we're talking about doing that on HN could be a contrarian indicator that near term sentiment is way too pessimistic.
I do strongly believe that we're not anywhere near the bottom yet since inflation is being driven by wage growth and the Fed has announced that they're going to increase unemployment. With unemployment still so historically low this is not the time to buy yet either. The roller coaster ride is going to get a lot lower, I just don't know what the exact path it is going to take to get there or exactly when the ETA is, so I can't see there's any useful way to trade it.
You might be able to guess the correct path and just get lucky and have it work out, but you will be straight up gambling. You should know your exit strategy if you do that and understand what information coming in will make you abort your strategy if you recognize that reality isn't agreeing with your model in order to limit your losses.