Mofra
Moderator
- Dec 6, 2005
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- #426
Who was is that said "the markets can remain irrational longer than you can remain solvent"? Livermore?I dived back into the market last week (didn't have the liquidity to return earlier) and I'm starting to think I may have been a bit premature. The goal is to flatten the curve and not to reduce the amount of area beneath it, with this in mind, why does that market assume that there aren't more hard times ahead?
I know the market is irrational, the sell-off was likely an overreaction, but doesn't the bounce back assume that policymakers were essentially wrong? (The virus in the medium to long-term is not disruptive).
Perhaps a big driver of the optimism is technology and opportunities relating to deeper talent pools (ability to recruit abroad now with remote work). As well as the assumption that people are social beings and the current treatments and preventative measures are enough for people and corporates alike to take risks.
I've got a lot of long term free-carry holdings that are enjoying the recent run but am not willing to discard my downside protection just yet. A second wave could prove devastating.