SHDL

Thanks. So these ETFs are basically selling a regulatory loophole.

Is there a reason why you prefer something like SDS over just shorting ES? I don’t see it, but I may be missing something.

I believe his take on this is that classical value stocks are underperforming because they are being sold by active managers who tend to be value oriented and are facing net redemptions as their core clients retire, and they are not being bought enough by the index funds that younger people tend to buy. For banks though, you are probably right. I’m sure there are plenty of active managers who are underweight/short them at the moment.

I’m glad you guys liked it. As to whether you can make money from this, that’s hard to say. He doesn’t really give a stock pitch, just an indication that his fund has lots of cash and a certain kind of straddle (which is vague enough to repel any cloners). But if you understand what he’s saying there are some useful takeaways. For instance if you are long only with a quality/growth focus you have a nice tailwind but you may want to be hedged if you want/need to avoid big drawdowns. Or if you are more of a classical value person you may want to pay special attention to catalysts and exit strategies because betting on valuation mean reversion may not work as well as it has in the past.

I don’t think you are missing anything. The position you are thinking about establishing in your taxable account is called a bear call spread in case you want to look it up. I also don’t think there will be a wash sale issue here as long as the options have different strikes.

I think this is a little hard to generalize. One thing I’ve noticed is that a lot of young professionals here seem to be going Metro-free. They live not too far away from their offices, walk/bike maybe 15-30 mins to work, and use Uber for everything else. Areas like Logan Circle are/were indeed doing quite well even though there are no conveniently located stations nearby.

yup. x2 (joke intended) Probably good timing, though I’m no fan of inverse/levered ETFs.

One theory that’s been going around is that there is a gamma squeeze going on. See, for instance: Another contributor to the dynamic I think is the low “effective float,” by which I mean a large number of shares are held by people who will basically not sell at any price close to where it’s trading. That essentially makes the stock less liquid and its price more sensitive to additional buying.

This was one of the most interesting macro/quant discussions I found recently: https://podcasts.apple.com/us/podcast/the-grant-williams-podcast/id1508585135?i=1000483139066 The guest is Michael Green and he talks about how the rise of passive investment vehicles seem to have made the US stock market more prone to extreme boom/bust cycles since around 1995. He also discusses what that means for various investment strategies and how he’s running his fund in response. The fund’s website: https://www.logicafunds.com/

Yes the answer depends a lot on what you’re interested in. A few things to note: 1. The NW (which includes Georgetown) is the historically rich neighborhood. 2. The rest of the city has gentrified a lot over the years, so keep that in mind when reading older documents or asking people who lived here years ago. Logan Circle for instance was known as a pretty dangerous area until not too long ago, but now it’s a hip neighborhood for yuppies. Walk a few blocks east and things start to look sketchy. 3. There is a “Chinatown” but if you go there you will know what the quotation marks mean. :)

Musk is now richer than Buffett! https://www.bloomberg.com/news/articles/2020-07-10/elon-musk-rockets-past-warren-buffett-on-billionaires-ranking

I don’t think there is a particularly good argument. Their decision to go with an index fund like approach was most likely a compromise given that they didn’t have the time/resources to do fundamental analysis on each issuer and also (less importantly) they didn’t want to look like they were actively picking winners and losers. It’s also noteworthy that the Fed didn’t really need to buy anything to prop up the markets. Broadcasting their intentions was enough. They probably could have gotten away with buying nothing at all.

“Coronavirus: Japan's mysteriously low virus death rate” https://www.bbc.com/news/world-asia-53188847

Are they marbled like this? I will do a blind taste test vs this beauty and get back to you. Yeah, that Costco one is a little out of my price range Imagine making a truffle cheesesteak sandwich with that? $120!

Are they marbled like this? I will do a blind taste test vs this beauty and get back to you.