Sunday
Stocks exist in Australia that allow one to short the market – i.e. bet that the market is going to go down. I own some – BBOZ. Please do not take what follows as any sort of investment advice. I have a record as a stock tipper almost as bad as that of my picking winners of the Melbourne Cup.
I have no idea from whence BBOZ’s income is derived, nor do I really care; it just seem like a good stock to have a punt on at the moment.
I took the following screenshot from this article a few minutes ago…
It is not just the wide gap between the performance of the stock market and that of the economy; it is that their trajectories are in opposite directions. The damage caused to our economies by panicked, authoritarian politicians becomes daily more obvious. Yet, as an increasing number of businesses shutter up and unemployment soars, so the stock markets zoom upward. The gap is widening – dramatically. How far can it go before reality intrudes? That is quite beyond my powers of prediction.
I have been waiting for the US market to fall sharply (the Australian market follows in lockstep), so that BBOZ will begin its rise. The thought just came to mind that BBOZ will more likely be a leading indicator, rather than a lagging one. In other words, there must be many people who know full well that the market is going to crash. But when? They know no better than I. They cannot afford to be out while the market is rising, but they will begin to cover their well-wined and dined bottoms by buying a stock in the anticipation of it going up if the rest of their portfolio crashes.
So, watch for BBOZ to begin rising. As it does, realize that this is an indicator
that more and more investors speculators are of the opinion that the
market crash is close. At a certain
point, that will be a self-fulfilling prophecy. When the crash does come, even the stocks of
the monetary metals will crash – briefly.
That will be the time to sell BBOZ and get the ‘money’ back into
Gold/silver miners before they quickly bounce off a bottom.
But do hold in mind that it’s 55 years since I last picked the winner of the Melbourne Cup.