4 ms·

Well at least he’s open about the fact that he’s heavily shorting the sp500.

• jfengel 4y ago
  Interesting. The S&P 500's P/E is currently 22 -- high by long-term historical standards, but not an outrageous number. It corresponds to about a 3% interest rate. It doesn't sound like something ripe for a crash. Maybe it will fall to the long-term historical average of 15, which is a win, but it doesn't sound like the kind of get-rich-quick scheme you want from a high risk investment like shorting. The market can remain irrational longer than you can remain solvent -- the S&P seems like it's in a position to go up rather than down. I mean, hey, you get rich by placing the big bets. You short something, you get free cash to put elsewhere. Pick a winner and you can come out ahead even if the S&P 500 doesn't drop. But I don't have a strong stomach for that kind of risk.