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We could ask this question about Bitcoin too... price dwindling, mempools clearing. What happens if it all goes wrong?!
What happens if it all goes wrong? Investments designed to preserve your wealth in a stock-market downturn can help preserve your sanity too, allowing you to avoid dumping your favorite stocks as prices tumble.
Thiz badz.
Today Mr. Mackintosh in the WSJ is trying to help us understand how to hedge baaaad market moves
The conclusion is worth pondering for us over-exposed psychopaths:
When choosing a safe asset, it’s just as important to know who else owns it as to think about its fundamental properties. If they all sell in a panic, you’re stuck with something worth a lot less if you need to sell in a hurry.

Treasury yields don’t reliably move in the opposite way to stocks, as they did from the 1970s to the late 1990s.

"they can no longer be relied on to provide a sweet treat when stocks drop."

Gold has already been a big beneficiary. The price is up 50% in just over a year as investors bet on more buying by foreign central banks concerned about parking their money in dollars. This might be a problem. Unlike Treasurys and the dollar, gold ought to do well in a new era of inflationary pressure. But like Treasurys and the dollar, a lot of money has already poured in. How will it fare in a panic? Gold gained a similar amount in the 12 months to March 2008, as fears of financial troubles rose. But when first Bear Stearns and then Lehman Brothers failed, gold prices crashed from above $1,000 an ounce to just over $700, as investors sold to pay off debt.
Still, dude recommends Treasurys, so that probs disqualifies his opinion in general.
When choosing a safe asset, it’s just as important to know who else owns it as to think about its fundamental properties. If they all sell in a panic, you’re stuck with something worth a lot less if you need to sell in a hurry.
When others are selling in a panic, it's the time to buy.
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with what money, SimpleStacker?!
Y'alls still have fiat or even chairs?!
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That's a good question.
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One argument for staying diversified is simply to take advantage of silly market psychology
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Treasuries and gold are the main safe assets.
If the recovery is quick use stablecoins to quickly get back in the crypto market.
Specific assets can also be a good investment, by this I mean real inventory of an asset that will appreciate in your nation after the tariffs kick in.
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People love that government paper!
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Translation: "I know this is stupid, but I don't want people thinking I'm some far right extremist."
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buy vix calls and spy puts when markets are crashing
or buy them before a crash and sell when they do crash
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i've never been successful with timing downturns. It seems like the market can keep going up longer than I have the patience to maintain a bearish position.
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Think about why markets are falling...
China has won the trade war and is now challenging broader US hegemony.
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