23.6 C
Houston
Sunday, November 1, 2020

Turbulence Ahead… | Zero Hedge

Via AdventuresInCapitalism.com,

On Monday, I return to work from an extended vacation (I didn’t miss much it seems). I’m refreshed and ready for what will likely be one of the craziest periods for the markets since the COVID Crash.

I realize I’m the guy who has gone out there and said you have a free shot on goal ever since late March. I even called it “Project Zimbabwe,” as it was so obvious that you only had two acceptable exposure options, long and very long.

That said, now is a time for a bit of caution leading into the election.

Longer term, markets are going much, much higher because no matter who wins the Presidency, both parties are committed to the sort of fiscal and monetary expansion that only Banana Republics can countenance.

“Project Zimbabwe” is very much the playbook here.

That said, over the next few weeks leading up to the election, there will almost certainly be volatility.

The election itself may be undecided in the first day. Who knows what happens if one side does not accept the outcome? Markets abhor uncertainty.

With all of that in mind, this is your friendly reminder to de-gross a bit.

Increased liquidity equals free optionality. Besides, it’s not like I think I’ll miss much upside leading into election day.

In summary, I’ve been a seller over the past few weeks. I’m letting Event-Driven trades run off and I’m hesitant to add new ones unless they’re somehow hedged. I am also going to let my September paper roll off and will not re-load for November—not unless implied volatility spikes into election day.

This isn’t a call to panic sell or get short. It’s still “Project Zimbabwe” out there. Rather, much like going into the COVID Crash, this is a time to go through your book and ask if you’re confident in each of your positions, or if there are a few that ought to be jettisoned. Remember, most of the money is made buying the panic dips—do you have room to add on a violent pullback?

In summary, I want some extra room in case this election turns into a complete klusterfuk.

Zerohedge

Latest news

Large US Early Voting Surge as Trump, Biden Make Late Push

A record 90 million Americans have voted early in the U.S. presidential election, data on Saturday showed, as President Donald Trump and his Democratic...

Trump edges out Biden in Iowa in gold-standard poll

President Trump has pulled ahead of Democratic presidential nominee Joe Biden in Iowa three...

Third grand juror in Breonna Taylor case wants to speak out

A third grand juror in the Breonna Taylor case plans to speak out about the controversial deliberations that cleared three Louisville cops of any...

Rep. Mike Garcia: ‘If You Want to Fix the Nation, You’ve Got to Start with California’

Rep. Mike Garcia, a Republican congressman for California’s 25th district who is running for reelection in November, blasted Democrats’ failing policies in California in...

Related news

Large US Early Voting Surge as Trump, Biden Make Late Push

A record 90 million Americans have voted early in the U.S. presidential election, data on Saturday showed, as President Donald Trump and his Democratic...

Trump edges out Biden in Iowa in gold-standard poll

President Trump has pulled ahead of Democratic presidential nominee Joe Biden in Iowa three...

“A Lot Of People Are Leaving”: COVID Shutdowns Have Turned San Francisco Into A Ghost Town

San Francisco has managed to curb the virus slightly in its city - but at what cost? Those paying sky high taxes to live...

Bernie Sanders endorses Sarah Iannarone for Portland mayor

Far-left Portland mayoral candidate Sarah Iannarone, who has described herself as an "everyday anti-fascist" and declared, "I am Antifa," has received a huge endorsement...

Christians Worldwide Mark International Day of Prayer for the Persecuted Church

Millions of Christians worldwide will unite on Sunday, Nov. 1 to join the global body of Christ for the 2020 International Day of Prayer...

Obama trolls GOP over coronavirus ‘control’ admission and lack of healthcare plan

Former President Barack Obama lit into Republicans, specifically White House chief of staff Mark...

Twitter’s Censorship “Endangers National Security”: DHS Acting Secretary

Authored by Mimi Nguyen Ly via The Epoch Times,Acting Secretary of the Department of Homeland Security (DHS) Chad Wolf called on Twitter CEO Jack Dorsey to “commit to never again...

Fraudster Attempts to Register Dozens of Dead People as Democratic Voters in Florida

A person tried to register over 50 dead people as new voters in Broward County, Florida, with mail-in applications, authorities said. The person from Columbia,...

Trending News

White House Blocks CDC ‘No Sail’ Order

The Centers for Disease...

Rasmussen poll says 46% of black voters approve of President Trump

A daily tracking poll of President Donald Trump's job approval released Friday showed an eye-popping surge in approval for Trump among black voters. According...

High Potency Marijuana, Psychosis, and Suicide: Johnny Stack’s Story

DENVER—It’s a grief that’s unimaginable. Deep, raw, and ever present. Laura and John Stack are still reeling over the loss of their son to...

WATCH: BLM Protesters Target Jews in Philadelphia While Yelling ‘Synagogue of Satan’

Rioters in Philadelphia, Pennsylvania, targeted a group of Jews at protests Tuesday evening against the police shooting of an armed black man, calling them...

Twitter suspends Border Patrol chief’s account for ‘hateful conduct’ over praising border wall

Twitter suspended the account belonging to U.S. Customs and Border Protection Commissioner Mark Morgan...

Former never-Trumper James Lindsay on why he just CAN’T vote for Joe Biden

This is a moment "Cynical Theories" author James Lindsay probably hoped would never come. The liberal mathematician and host of the "New Discourses Podcast"...

UPS Locates Joe Biden-Related Documents That Tucker Carlson Said Were Lost

Delivery giant UPS confirmed Thursday it found a lost trove of documents that Fox News’ Tucker Carlson said would provide revelations in the ever-growing...

Joe Biden Boasts Of ‘Most Extensive’ Voter Fraud ‘In The History Of American Politics’

Democratic Presidential Nominee Joe Biden recently bragged that Democrats have created the “most extensive and inclusive voter fraud organization in the history of American...