/biz/ - Business & Finance

>>12136847
Buying when Q is low and staying in cash when Q is high outperforms just holding in the long run.
It's if you can mentally deal with losing out on immediate gains while everyone else is making money before the market slumps.

I'm not giving you any concrete advice as I'm currently saving before getting in the market. Never been invested before as I'm quite young and from humble beginnings.

>>12133169
>Not a single major statistic points towards a nearby recession.
Wrong

Are you prepared? We can't have a perpetual bull run.

Tobin's Q, or the Misesian Stationary Index, is a fairly good indicator of overvaluation. Look at the previous dates where Q is high.

>The biggest brain tail hedge is far OTM puts.
“In April 2010, Universa paid about $2 each for S&P 500 put options expiring that May that would pay off if the index fell below 1,100. At the time, the index was around 1,200. The firm sold the puts as they soared to more than $60 each during the one-day crash on May 6, when the S&P fell as low as 1,066, erasing $862 billion in U.S. equity values in 20 minutes.”

>Not all of can use this approach. Share other ideas that may help other anons:
Leveraged VIX ETF
Defensive Stock allocation, e.g Tobacco, Food, Utilities
Other negative or low Beta stocks during financial crisises

>>12125971
/smg/ is even worse than the crypto posts. They're all retards, especially the tripfags.
When the bear market in stocks comes we'll have better quality.

Tobin's Q/Mark Spitznagel reposting.

“In April 2010, Universa paid about $2 each for S&P 500 put options expiring that May that would pay off if the index fell below 1,100. At the time, the index was around 1,200. The firm sold the puts as they soared to more than $60 each during the one-day crash on May 6, when the S&P fell as low as 1,066, erasing $862 billion in U.S. equity values in 20 minutes.”

Far OTM puts are the big brain solution to preparing for bear market while still remaining in the market.

Tobin's Q boys.
Look at the dates, when Q is high a correction/recession is due. Make your money and get your options ready for blood in the streets