Markets Are Simply Overvalued
Hedging The Downside Works
Are you ready for tomorrow night’s debate? We are serving pizza and popcorn, and I can hardly wait to listen to the pundits who already have their scripts written. Face it, folks, a few undecided people in this election will make a difference. Neither party is addressing the “elephant” in the room, as the only tools that will work are to drill for more energy and cut regulation.
I don’t think that an agenda of this nature fits into Kamala’s platform but like Kerry, it doesn’t matter. She’ll be for it even though she was against it before she realized she’d better support it or lose the election. Again, I’ll be watching the debate and just might serve some pancakes as they’ll reflect the “flip-flop” nature of what’s expected.
The Markets Are Too High
Nice run-up today. Picked up additional 2025 March 30 VIX call options as the herd was throwing them out. Always good to buy when they sell, especially when markets are priced for perfection. In other words, they are “overvalued”.
The trailing S&P P/E ratio was 27.54, and the forward ratio was 23.54. I am still buying good stocks but 25% of the money I manage is still sitting in cash. I’m a basic hedger against what I perceive as an eventual downside. Remember, declining interest rates are not an indication of strength or growth, and they’re coming down. Inverted yields are becoming normal, and good-paying dividend stocks are king. I’ve been saying this for a while and hope you have been listening and acting. There’s more to come.
The Ticker Is Changing
Many people have asked, “where have I been?”. I’m working with a new group that has taken an interest in my style of teaching, investing, trading, and hedging. It’s been two to three months of thinking out loud with each other. Hopefully, the results will be on the new and improved website by the end of the month. Thanks for waiting and for all of your support and input. Roe was not built in a day, and neither was The Ticker.
Freddie Mercury was right. “I’m Going Slightly Mad,” and it finally happened. I’ll turn 70 years old next April. Am I thinking about it, yes, absolutely. I still find it hard to believe that there is a question about who is more qualified to run the country. It is equally problematic that stock prices are this high. Lots of things simply make little to no sense to me. How about you?