Global Market Comments March 19, 2020 Fiat Lux Featured Trade: (INVESTING ON THE OTHER SIDE OF THE CORONA VIRUS), (SPY), (INDU), (FXE), (FXY), (UNG), (EEM), (USO), (TLT), (TSLA)
The Coronavirus has just set up the investment opportunity of the century. In a matter of three weeks, stocks have gone from wildly overbought to ridiculously cheap. Price earnings multiples have plunged from 20X to 13X, well below the 15.5X long term historical average. The Dow Average is now 5% lower than when Donald Trump
"By historic, fundamental measures, stocks are extremely high. PE multiples are at 100 year highs. But if you look at stock prices relative to interest rates, they are exactly where they should be," said hedge fund legend, Stanley Druckenmiller.
Global Market Comments March 18, 2020 Fiat Lux Featured Trade: (LOOKING FOR LEVERAGED LONG PLAYS), (SPY), (INDU), (SSO), (UPRO)
This is a time where everyone is wondering: what is the future of coronavirus and, in turn, the economy? It is highly likely that the stock market will bottom out over the next few weeks and then begin a period of sideways chop in a wide range. That range could be half the recent loss,
Global Market Comments March 17, 2020 Fiat Lux Featured Trade: (LONG TERM ECONOMIC EFFECTS OF THE CORONAVIRUS), (ZM), (LOGM), (AMZN) (HOW TO HANDLE THE FRIDAY, MARCH 20 OPTIONS EXPIRATION), (AAPL), (AMZN), (MSFT)
The world will never be the same again. Not only is the old world rapidly disappearing before our eyes, the new one is breaking down the front door with alarming speed. In short: the future is happening fast, very fast, and with coronavirus, people are understanding wondering about economic effects long term. To a large
Followers of the Global Trading Dispatch have the good fortune to own a deep in-the-money options position that expires on Friday, and I just want to explain to the newbies how to best maximize their profits on that March 20 expiration. This involves the: Apple (AAPL) March 2020 $220-$230 in-the-money vertical BULL CALL spread Microsoft
"Interest rates are gravity. When they are zero, share prices can go to infinity. When they are high, as they were during the early 1980s, the gravitational pull can be very strong," said Oracle of Omaha, Warren Buffett.
Global Market Comments March 16, 2020 Fiat Lux Featured Trade: (MARKET OUTLOOK FOR THE WEEK AHEAD, or THE PANIC IS ON), (INDU), (SPX), (VIX), (VXX), (GLD), (USO), (TLT), (AAPL), (WYNN), (CCL), (UAL)
I just drove from Carmel, California to San Francisco on scenic Highway 1. I was virtually the only one on the road. The parking lot at Sam’s Chowder House was empty for the first time in its history. The Pie Ranch had a big sign in front saying “Shut”. The Roadhouse saw lights out. It
When asked how he felt when visiting the Federal Reserve at the height of the financial crisis, Goldman Sachs CEO Lloyd Blankfein responded, "I'm getting out of a Mercedes to go to the Federal Reserve, not getting out of a Higgins Boat going to Omaha Beach."
To minimize risk to our staff while continuing to provide an excellent service to our customers, the Mad Hedge Fund Trader is going completely virtual. Of course, the fact that we are already a global virtual company makes this really easy. All work will be done from home. Everyone has to lay in a two-month
Global Market Comments March 13, 2020 Fiat Lux Featured Trade: (MARCH 11 BIWEEKLY STRATEGY WEBINAR Q&A), (INDU), (SPX), (LVMH), (CCL), (WYNN), (AXP), (JPM), (MSFT), (AAPL), (NVDA)
Below please find subscribers’ Q&A for the Mad Hedge Fund Trader March 11 Global Strategy Webinar broadcast from Silicon Valley, CA with my guest and co-host Bill Davis of the Mad Day Trader. Keep those questions coming! Q: What is the worst-case scenario for this bear market? A: The average earnings loss for a recession is 13%. Last year,
Global Market Comments March 12, 2020 Fiat Lux Featured Trade: (SHORT SELLING SCHOOL 101) (SH), (SDS), (PSQ), (DOG), (RWM), (SPXU), (AAPL), (VIX), (VXX), (IPO), (MTUM), (SPHB), (HDGE)
Global Market Comments March 11, 2020 Fiat Lux Featured Trade: (A NOTE ON ASSIGNED OPTIONS, OR OPTIONS CALLED AWAY), (AAPL), (BA), (UAL), (CCL), (WYNN), (FB)
I almost got to take a shower today. However, whenever I got close to the bathroom, I'd get an urgent call from a concierge member, Marine buddy, Morgan Stanley retiree, fraternity brother from 50 years ago, or one of my kids asking me which stocks to buy at the bottom. It’s been that kind of
“At some point, all the money that has been parked in bonds and money market funds over the last five years will go into equities,” said Julian Emanuel of investment bank BTIG.
Global Market Comments March 10, 2020 Fiat Lux Featured Trade: (RISK CONTROL FOR DUMMIES IN TODAY’S MARKET), (SPY), (VIX), (VXX), (AAPL), (CCL), (UAL), (WYNN)