Russell 2000 small-cap index.
A year ago we were very bullish on the small-cap index. It is the only thing we bought during the Covid crash.
We are not bullish anymore.
The way I got taught is: "Vertical, euphoric & parabolic moves are terminal, bull market ending events."
A year ago we were very bullish on the small-cap index. It is the only thing we bought during the Covid crash.
We are not bullish anymore.
The way I got taught is: "Vertical, euphoric & parabolic moves are terminal, bull market ending events."
The worse thing in this business is to have someone — who never called the bottom — attempt to call the top.
Here is my call on small-cap stocks back in late March 2020.
Here is my call on small-cap stocks back in late March 2020.
https://twitter.com/TihoBrkan/status/1243177020558848001?s=20
Small caps like the Russell 2000 index look extremely unattractive now.
In real estate, agents tell you "this is a buyers market" or "this is a seller's market".
With that in mind, we believe this is not a great buying opportunity, instead this is a great selling opportunity.
In real estate, agents tell you "this is a buyers market" or "this is a seller's market".
With that in mind, we believe this is not a great buying opportunity, instead this is a great selling opportunity.
As a side note, we rarely (if ever) do this, but have started buying some OTM puts on the Russell 2000 index.
Don't really like to speculate, shorting isn't a wise strategy, but currently, we have a parabola & euphoria so it really is an interesting risk/reward setup.
Don't really like to speculate, shorting isn't a wise strategy, but currently, we have a parabola & euphoria so it really is an interesting risk/reward setup.
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