#reflexivity between #bubbles vs #antibubbles once again distorting markets
Artificially low #VIX forces quant strategies (trend, risk parity, vol target) to buy #SPX, squeezes weak shorts
#insurance tends to be cheapest when we need it the most
Anti-bubble framework 👇
Artificially low #VIX forces quant strategies (trend, risk parity, vol target) to buy #SPX, squeezes weak shorts
#insurance tends to be cheapest when we need it the most
Anti-bubble framework 👇
1) Embrace #volatiltiy. Don’t fight it.
2) avoid #leverage, your enemy responsible for financial and emotional distress.
3) Seek negative #correlation and avoid risk of false #diversification. Remember that a portfolio with many holdings is not necessarily diversified.
2) avoid #leverage, your enemy responsible for financial and emotional distress.
3) Seek negative #correlation and avoid risk of false #diversification. Remember that a portfolio with many holdings is not necessarily diversified.
4) Seek #Emotional indifference. If your trading makes you overly happy or sad, you are trading too big.
5) #Rebalance Portfolio = sell high, buy cheap. Now is time to trim risk, add insurance
6) #compound on capital preservation. Goalkeeper most important player in any team.
5) #Rebalance Portfolio = sell high, buy cheap. Now is time to trim risk, add insurance
6) #compound on capital preservation. Goalkeeper most important player in any team.
I hope the ideas and framework are helpful.
You can #subscribe to my monthly newsletter, the #AntiBubbleReport free via link in my profile.
Please like, retweet, follow for #contrarian global macro and portfolio construction ideas.
Good luck and happy successful investing!
You can #subscribe to my monthly newsletter, the #AntiBubbleReport free via link in my profile.
Please like, retweet, follow for #contrarian global macro and portfolio construction ideas.
Good luck and happy successful investing!
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