The Long Feb 21 306 Strike Put @ .20 will be closed on Monday 2/17 and a new position was opened on 2/11, a Long March 16 2020 325 Strike Put @ 2.20. I expect to close this position before 2/21/2020 and continue to roll out. Cash is ready to be deployed the more overbought this market becomes. My thought is we are in the first spike of the “M” top of this massive debt bubble.
By way of recap, on 12/19/2020 CNBC news anchor says she’s 100% in equities. Warren buffet has the largest cash pile since 2007. Conventional wisdom about 60:40 equities:bonds is being questioned and suggested it should be 75:25 now. The Minimum age for required minimum distributions has been raised from approx. 70 to 72 yrs. of age with the Secure Act to “promote saving”. New legislation is being considered for tax advantages for owning stocks right now.
Let the credit flow, let the people buy up the cars and the things they like, then pull the easy money and inflated assets in order to separate the prudent from the foolish. Keep the foolish working for the things that they love so much. Those that have not fallen into the trap will benefit. The first shall be the last and the last shall be the first. The burden falls on each one of us to live in a way that handles debt wisely and promotes self-reliance. This is the only way to change course. Either we do it or it will be done for us.