search instagram arrow-down

Infinite Games

SPX

Markets are good at sending warning signs…against hubris, greed and whatever drives people to degeneracy and excess. Wild swings in particular have a tendency to expose gluttons because they tend to suffer disproportionate losses when the market goes against them. Making large bets with borrow money and complicated financial products (derivatives) to mitigate risk provides a false sense of security. I suspect the coming storm is likely to claim a few over-leveraged players.

Trade Update:

I sold my TZA position for a 1% loss. I’m not crazy enough to hold a 3x leveraged (bear) ETF over the weekend. Rules are rules. I also added to my SH position (short S&P 500), putting my discretionary trading account at 61% cash and 39% equities. My quant portfolio is 90% equities and 10% cash.

Remember, trying to predict the future is futile.

Leave a Reply
Your email address will not be published. Required fields are marked *

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google photo

You are commenting using your Google account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s

%d bloggers like this: