Wow- the last few days have been quite interesting- or stressful if you saw your stocks drop like a rock-
My gold, uranium, and oil stocks got hammered- In three days, I had a 10% loss- But that’s fine-
It’s all part of playing the commodity cycle- The only thing that really hurt me more were my short put positions that turned from positive to negative….
When it pours it rains. However, the good news is that I have cash. Yes, cash is king. And I got my tax
refund so my cash position is good.
I was originally about 20% cash. I went into to buy more when gold and uranium stocks dropped suddenly as I was expecting some bounce back in a few days. It did not happen. Still I have about 8% cash.
Next week, I believe we will see some recovery and my put positions will become positive again as the time value deteriorates.
So what is my game plan? Cash, cash, and more cash. I plan to sell out many positions at a small position and try to go to 30% cash.
I will also sell calls now instead of puts. I think the market correction or crash is only starting and it will get ugly before it becomes reasonable.
There is no way the Fed will back out from the interest rate hike position unless it wants to lose its credibility. Supply chain issues and inflation won’t go away anytime soon. The war in Ukraine is going longer than expected. So lot more negative news…
Very thankful that I can invest and that I always have money on the sidelines- This are not easy times but we learn something and we just need to hang tight-
Thank You Jesus for another blessed day. Let us always be thankful and give all the Glory to You Lord.
Rejoice at all times. Pray without ceasing. Give thanks in every circumstance, for this is God’s will for you in Christ Jesus.
1 Thessalonians 5: 16-18