WHY I CAN’T SELL ALL MY STOCKS IN 2020! (or Buy Put Options)

TL;DR

The content discusses the author's concerns about the stock market and economy but also explains why they are not selling their stocks or buying put options due to the risks and uncertainties involved.

Transcript

well Holy Smoke is is a no Jokers if you've been watching my two YouTube channels for the last 2 or 3 days you know that I am NOT too bullish at the moment I'm watching a stock market that continues to go up I'm watching an economy that continues to fall and I'm very worried about kind of where we're headed it has been told us and I've talked about... Read More

Key Insights

• 😑 The author expresses concerns about the overvaluation of the stock market and the ongoing economic downturn.
• 🍉 They believe in the long-term growth potential of certain stocks and are willing to withstand short-term risks.
• ✋ The high premiums associated with buying put options make them an unattractive option for the author in the current market.
• ❣️ The author is adopting a cash-heavy position to take advantage of potential buying opportunities if stock prices drop significantly.
• 🧘 Taking extreme positions of selling all stocks or fully investing in the market both carry considerable risks.

Questions & Answers

Q: Why is the author hesitant to sell their stocks despite being bearish about the market and economy?

The author believes in the long-term growth potential of certain stocks, especially companies like Facebook, Tesla, and Uber. They are willing to weather short-term risks for potential future gains.

Q: Why does the author consider buying put options a risky move?

The author finds put options expensive due to high premiums caused by increased market volatility. They highlight the large stock price drops needed to break even and emphasize the unpredictability of the market.

Q: How is the author managing the risks in the current market?

The author is keeping a significant amount of cash or liquid assets on hand, creating a win-win situation. They are ready to buy more stocks if prices drop significantly but are also prepared to benefit if their current stocks continue to rise.

Q: What are some specific stocks the author mentions and why they are not selling them?

The author mentions stocks like Carnival Corporation, Facebook, Uber, Tesla, Wynn Resorts, Skyworks Solutions, Revolve, and Las Vegas Sands. They believe these companies have strong growth potential, even if they experience short-term volatility.

Summary & Key Takeaways

• The author is skeptical about the stock market and economy, expressing concerns about potential market drops and overvaluation.

• However, they are not selling their stocks as they believe in the long-term growth potential of certain companies like Facebook, Tesla, and Uber, despite short-term risks.

• The author also explains why they are not buying put options, citing high premiums due to increased market volatility and the need for substantial stock price drops to break even.