My game plan this week

Fed just announced rates of 0% and a massive $700 billion quantitative easing. Naturally, US futures broke trading limits again by dropping over 5%.

Its madness going on in the markets now. Clear signs of dysfunction going on, with huge spreads in bond prices.

It is a shame to sit back and not grab bargains.

Things can still go very sour on my bonds. Last week my broker was assuring me that dropping another 5% was unthinkable.. guess what… it dropped 10%. Who knows what these few days will bring.

So I have to play small. What I will do to pull out cash is to pledge my shares to the margin account so the valuation goes up. I had over $80K tied up and was frustrating to be so short of cash.

I’m looking at Amazon, FaceBook, and Google. These should do reasonably well even in a drawn out virus situation. Amazon should actually be having stellar sales now, being an online retailer.

I would love to own Tesla again, but it being a luxury good and oil prices at incredible lows, I can’t see how it can keep up its stock price for now.

Given my famously good luck and timing skills, its probably a good time for the rest of you to short.

2 comments

  1. Hi, stumbled upon your blog. Interesting perspective undoubtedly brought upon by the unfortunate turn of events – I’m sorry to hear of the way you reached FI. Keep writing, I’ll be back for more 🙂

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