Thought there might be price support at DOW 20,000. That didn't happen so not sure where a floor would be. I also don't really trust large up days right now. I can't tell if the momentum is good or if one of the massive players is caught in a short squeeze and calling Mnuchin for money.
Digital currencies have mirrored the stock market when it doesn't seem like they should. Digitals were probably a bubble also and needed some air released. Yesterday it looked like XBT might start separating from the DOW. Today it looked like they separated until the last 20 minutes of the equity market.
I stuck my toe in the water and picked up some XBT. For the last week it has been in a narrow range (relatively). If it breaks out north I will add to the position. If it breaks south I am out of it.
If equities wallow or fall some more, XBT may have some upside possibilities. I still am not big on digitals and wouldn't put a large percent of net worth in them. It just provides a trade that might run counter to the market.
We should resurrect this thread in a year. I am sure it will be good for a bunch of laughs.
All the countries of the world are debasing their currencies. I have done the following two trades as a hedge:
Above is my post from 3/18. I bought XBT at $5,200. I continued adding to my position through the $6,000's. XBT went over $19,000 today.
Somewhere in this thread I believe I mentioned buying ETH. If I remember correct my first purchase was at $142. I have continued to add to that position with my last purchase in the $400's. Price at the moment is just over $600.
The following is not a hedge but a long term investment.
Before the virus I already had LINK. After the virus I picked up some more at $3.53 and added to the position and will continue to add to this position, probably for many years into the future. The price today is over $15.
I sold all of our nontaxable stocks at the end of January when I first heard of the virus and put the funds into short term bonds. I was fortunate in that I missed the fall however I was slow to buy back in and missed much of the recovery. I bought back in at DOW 25,000. Wish I had been smart enough to put all those funds into the first three items I mentioned.
At the start of the virus I sold a couple pieces of real estate just to make sure cash was available. Probably should have kept the real estate, but on the up side some of those monies went into XBT, ETH and LINK
These are all of my buys/sells this year. 2020 makes me look like a genius when in reality this was the adjustment year to keep my decades long rate of return looking presentable.