LIVE Gold Prices $  | E-Mail Subscriptions | Update GoldSeek | GoldSeek Radio 

Commentary : Gold Review : Markets : News Wire : Quotes : Silver : Stocks - Main Page 

 GoldSeek.com >> News >> Story  Disclaimer 
 
Latest Headlines

GoldSeek.com to Launch New Website
By: GoldSeek.com

Is Gold Price Action Warning Of Imminent Monetary Collapse Part 2?
By: Hubert Moolman

Gold and Silver Are Just Getting Started
By: Frank Holmes, US Funds

Silver Makes High Wave Candle at Target – Here’s What to Expect…
By: Clive Maund

Gold Blows Through Upside Resistance - The Chase Is On
By: Avi Gilburt

U.S. Mint To Reduce Gold & Silver Eagle Production Over The Next 12-18 Months
By: Steve St. Angelo, SRSrocco Report

Gold's sharp rise throws Financial Times into an erroneous sulk
By: Chris Powell, GATA

Precious Metals Update Video: Gold's unusual strength
By: Ira Epstein

Asian Metals Market Update: July-29-2020
By: Chintan Karnani, Insignia Consultants

Gold's rise is a 'mystery' because journalism always fails to pursue it
By: Chris Powell, GATA

 
Search

GoldSeek Web

 
Juicy Odds Betting Against an Epic Tide of Stupidity

By: Rick Ackerman, Rick's Picks

 -- Published: Monday, 3 October 2016 | Print  | Disqus 

We added to a put position on Friday with the purchase of some out-of-the-moneys that expire in three weeks. This is a longshot bet, since the S&Ps would need to fall by nearly 8% for the spread to go in-the-money. But the most we can lose at this point is $4 — that’s right, four measly dollars! — with a shot at making as much as $10,000 if the S&Ps should drop by 10% or more. Not bad odds, really, and we may be able to improve them if stocks drop only moderately next week. That would allow us to leg into vertical bears spreads with zero risk, or possibly even  a guaranteed profit no matter what happens between now and October 21.

A Perpetual Motion Machine?

It is true that our bet goes against a global tide of funny money that has been pouring into stocks with increasingly heedless abandon. The result is a bull market that has been chugging along since March 2009, and which may seem by now to be a kind of economic perpetual motion machine. For as we know, much of the buying is being done by companies who have used trillions in borrowed funny money, as well as their own, otherwise useless, spare cash to buy up their own shares. This has had the effect of raising earnings multiples without requiring any actual growth in business. Voila! Stocks rise, year-end bonuses fatten, warrants push above exercise prices and everyone is happy. In point of fact, however, no bear market has ever begun when ebullience similar to what investors must have been feeling on Friday, was not at a giddy crest. And while giddiness might not be particularly useful for precisely timing the onset of a bear market, it most surely justifies making bets like the one described above.  Visit our 24/7 chat room and share timely ideas and real-time results with great traders from around the world. Click on the link for a free trial subscription


| Digg This Article
 -- Published: Monday, 3 October 2016 | E-Mail  | Print  | Source: GoldSeek.com

comments powered by Disqus



 



Increase Text SizeDecrease Text SizeE-mail Link of Current PagePrinter Friendly PageReturn to GoldSeek.com

 news.goldseek.com >> Story

E-mail Page  | Print  | Disclaimer 


© 1995 - 2019



GoldSeek.com Supports Kiva.org

© GoldSeek.com, Gold Seek LLC

The content on this site is protected by U.S. and international copyright laws and is the property of GoldSeek.com and/or the providers of the content under license. By "content" we mean any information, mode of expression, or other materials and services found on GoldSeek.com. This includes editorials, news, our writings, graphics, and any and all other features found on the site. Please contact us for any further information.

Live GoldSeek Visitor Map | Disclaimer


Map

The views contained here may not represent the views of GoldSeek.com, Gold Seek LLC, its affiliates or advertisers. GoldSeek.com, Gold Seek LLC makes no representation, warranty or guarantee as to the accuracy or completeness of the information (including news, editorials, prices, statistics, analyses and the like) provided through its service. Any copying, reproduction and/or redistribution of any of the documents, data, content or materials contained on or within this website, without the express written consent of GoldSeek.com, Gold Seek LLC, is strictly prohibited. In no event shall GoldSeek.com, Gold Seek LLC or its affiliates be liable to any person for any decision made or action taken in reliance upon the information provided herein.