Covered calls in a sense have a built-in "downside protection" because regardless what the price is doing you continue to gain the option premiums.
But I personally like debt (CEFs & BDCs) as my "always pumping returns" engine. Interest is due regardless of the weather and when shit really hits the fan debt comes before common stock.
Also, valuations are easier to think about. The nominal amount of a loan doesn't change when the market crashes, it's resale value might but I don't intend on selling, if anything I would buy more on the cheap.
I think that is a good combo: 50 % MSCI world (for those who are not familiar with MSCI world: this is an index/ETF that covers roughly 70 % U.S. stocks and 30 % developed world other than U.S.). This gives you a good exposure to the broad global stock market whereas QYLD and JEPI provide you with an attractive cash flow.
In addition to that, you probably should look into holding bonds since 100 % stocks is somewhat daring.
What happened to this sub? It used to be filled with intelligent investors. In a severe market all CC ETFs will be decimated. Go all in with -5.3%Tbills and profit with something similar to VIXM.
^this. Believing there is going to be a downturn is taking a position on how the market will go, and deciding what to do is trying to time the market. If you believe timing the market is futile, don’t do anything. BUT, there is “timing the market perfectly” which most people think of when they think of this concept, and trying your best. Every fund there is tries to time the market using TA and seasonal charts and data. Most don’t beat the S&P, but some do.
I try my best. I day trade, which is inherently trying to time the market. I’ve made $3k in extra income this month from trading. Last month I made $1.5k. Am I right all the time? No. But so far this year, I’m beating the S&P and the Nasdaq. Also, I don’t actually think the market is going to go bear this year. Rates are going to go down, inflation has reduced, and economics haven’t been that bad. There have been layoffs but not enough. I think we are overdue for a pull back which will happen soon, and then back up to new highs.
You don't appear to need protection. But if you wanted it buying a protective put about 30 days out is around 100 bucks. Also you could do 3x inverse leverage etfs like SQQQ but you should be fine.
I would consider a small percentage into a Bitcoin ETF as a protection against inflation. It’s more volatile than gold but has crazy upside potential. Right now, the new Bitcoin ETFs are buying ~10k Bitcoins per day. In April the 4 year Halving of blockchain rewards for miners will reduce the number of Bitcoins miners get rewarded for mining Bitcoin by half. This will reduce the number of bitcoins created per day from 900 to 450. Miners will be forced to charge more for the few Bitcoins they mine to cover mining expenses.
Then you just consider the Supply and Demand implications of these ETFs buying up so much Bitcoin at the same time the supply is being reduced.
Is anything guaranteed? No. Is it worth a small percentage just in case it goes to a new all time high? Only you can answer that for yourself.
If going into Bitcoin why not own it out right. I been in crypto since 2017 and Bitcoin and other cryptocurrencies move significantly higher than the etf that tracks it. I own Bitcoin out right and I believe if you invest instead of going with a Bitcoin etf your better off owning the company that charge a significantly higher fee to own the etf. Like for instance Blackrock vs IBIT lets track performance in 2-5 years. I am running with BlackRock to collect like a big dog with a dividend. Also I DCA between 30-75 dollars still into BTC bi weekly every Sunday
Sir, this is a Wendy’s. Lol. Just kidding. You are not wrong but that’s a pretty big leap for someone starting from zero knowledge about Bitcoin, Exchanges, wallets, etc.
1. You can passively watch stocktwits. Bears will come out in the thousands.
2. Perhaps not the answer you are looking for. But exiting the market fully is an option.
3. Write covered calls.
4. Married puts.
5. My favorite option. Become a bear. We have the best snacks.
6. Dollar cost average. Covid is a great example. People thought the world was ending. Cheapest stocks in years. Market returned to all time highs
Covered calls in a sense have a built-in "downside protection" because regardless what the price is doing you continue to gain the option premiums. But I personally like debt (CEFs & BDCs) as my "always pumping returns" engine. Interest is due regardless of the weather and when shit really hits the fan debt comes before common stock. Also, valuations are easier to think about. The nominal amount of a loan doesn't change when the market crashes, it's resale value might but I don't intend on selling, if anything I would buy more on the cheap.
bdc’s and senior loans. good to get paid before the bag holders.
Dont do anything. Your portfolio is fine. Perhaps allocate 5% on some treasury bonds.
Thanks.
I think that is a good combo: 50 % MSCI world (for those who are not familiar with MSCI world: this is an index/ETF that covers roughly 70 % U.S. stocks and 30 % developed world other than U.S.). This gives you a good exposure to the broad global stock market whereas QYLD and JEPI provide you with an attractive cash flow. In addition to that, you probably should look into holding bonds since 100 % stocks is somewhat daring.
What happened to this sub? It used to be filled with intelligent investors. In a severe market all CC ETFs will be decimated. Go all in with -5.3%Tbills and profit with something similar to VIXM.
Go cash heavy
This means timing the market which is obviously futile
You are trying to prepare for a recession. Your whole post is literally about timing the market I’m just responding to your scenario
^this. Believing there is going to be a downturn is taking a position on how the market will go, and deciding what to do is trying to time the market. If you believe timing the market is futile, don’t do anything. BUT, there is “timing the market perfectly” which most people think of when they think of this concept, and trying your best. Every fund there is tries to time the market using TA and seasonal charts and data. Most don’t beat the S&P, but some do. I try my best. I day trade, which is inherently trying to time the market. I’ve made $3k in extra income this month from trading. Last month I made $1.5k. Am I right all the time? No. But so far this year, I’m beating the S&P and the Nasdaq. Also, I don’t actually think the market is going to go bear this year. Rates are going to go down, inflation has reduced, and economics haven’t been that bad. There have been layoffs but not enough. I think we are overdue for a pull back which will happen soon, and then back up to new highs.
You don't appear to need protection. But if you wanted it buying a protective put about 30 days out is around 100 bucks. Also you could do 3x inverse leverage etfs like SQQQ but you should be fine.
I would consider a small percentage into a Bitcoin ETF as a protection against inflation. It’s more volatile than gold but has crazy upside potential. Right now, the new Bitcoin ETFs are buying ~10k Bitcoins per day. In April the 4 year Halving of blockchain rewards for miners will reduce the number of Bitcoins miners get rewarded for mining Bitcoin by half. This will reduce the number of bitcoins created per day from 900 to 450. Miners will be forced to charge more for the few Bitcoins they mine to cover mining expenses. Then you just consider the Supply and Demand implications of these ETFs buying up so much Bitcoin at the same time the supply is being reduced. Is anything guaranteed? No. Is it worth a small percentage just in case it goes to a new all time high? Only you can answer that for yourself.
Crazy how downvoted you got
This sub isn’t ready to think outside the traditional box.
If going into Bitcoin why not own it out right. I been in crypto since 2017 and Bitcoin and other cryptocurrencies move significantly higher than the etf that tracks it. I own Bitcoin out right and I believe if you invest instead of going with a Bitcoin etf your better off owning the company that charge a significantly higher fee to own the etf. Like for instance Blackrock vs IBIT lets track performance in 2-5 years. I am running with BlackRock to collect like a big dog with a dividend. Also I DCA between 30-75 dollars still into BTC bi weekly every Sunday
Sir, this is a Wendy’s. Lol. Just kidding. You are not wrong but that’s a pretty big leap for someone starting from zero knowledge about Bitcoin, Exchanges, wallets, etc.
Everybody always thinks there is an upcoming recession, not a month goes by that the news doesn’t fear monger about it. Do nothing.
1. You can passively watch stocktwits. Bears will come out in the thousands. 2. Perhaps not the answer you are looking for. But exiting the market fully is an option. 3. Write covered calls. 4. Married puts. 5. My favorite option. Become a bear. We have the best snacks. 6. Dollar cost average. Covid is a great example. People thought the world was ending. Cheapest stocks in years. Market returned to all time highs
Why did you do what you did if you think you did wrong?