<sure, but why people were trashing me for going long AMZN at 10-11 i'll never know. what more did they want? they still are probably insisting it MUST go BK.>
If you are certain it is going BK, then short and hold is an acceptable strategy. However, it requires a *gulp* delta-hedged approach, which is what makes shorting such a pain in the a$$ to begin with.
<as for holding foreign currency, i don't get it. what's the expected return there? why not just buy TIPS and be happy with the guaranteed income. instead, the dollar remains strong and you're giving yourself agita.>
Again, I'm not saying hold foreign currency. But, does it make sense to hold a US bond paying 5%/year when the currency is being diluted at a rate of 20%/year? I am saying buy foreign bonds in the native currency. Get the 5% coupon, in a currency that means something, not our confetti greenbacks. I guess it all depends upon what you want to do with the money, too. Do you trust the feds to actually pay up on the real inflation? Have they adequately reflected the real decrease in purchasing power this cycle? I just want a decent return in a stable currency - and the dollar is ripe for a substantial slide based on purchasing power but more importantly capital flows.
< it's just that a couple things you said i felt were classic, and easily correctable, bear mistakes. >
A sincere thank you for your advice.
BC |
