New Harbor

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  • Sat, Mar 28, 2020 - 08:17am

    #1
    Hans Brost

    Hans Brost

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    Joined: Mar 26 2020

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    New Harbor

Watched the latest video from New Harbor.

What I don’t get is we’ve just had one of the biggest drops in the market, if not THE biggest, and New Harbor is only even/maybe up 1%.

You should be up huge if you knew what you were doing.

Why didn’t you hit Puts, or even short this market early on?

z

  • Sat, Mar 28, 2020 - 09:44am

    #2
    ao

    ao

    Status Platinum Member (Offline)

    Joined: Feb 04 2009

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    i had a friend contact me about buying an inverse S&P500 ETF

Whether doing this or shorting individual stocks or using options, the average person will get burned.

Here’s what I wrote him:

“The inverse ETFs are tricky. I tried playing that game during the 2000-2002 bear market. Initially, it went well … until it didn’t, lol. I didn’t play the same game in 2007-2008, if that says anything. I learned my lesson. There are multiple problems with using inverse ETFs to short the market. First of all, there is considerable erosion. In a bear market (and the present level of losses has now exceeded the 1929 crash), there are the dead cat bounces and multiple false rallies. The up and downs will eat away your assets. Volatility is not your friend with an investment like that and we are in an era of unprecedented volatility. Look at the VIX. The derivatives which comprise such ETFs increases your risk further. Then there are liquidity issues. If the market starts to powerfully rise during a strong panic rally and you want to bail, you may find yourself in a no bid situation, stuck with an ETF which is like a hand grenade with the pin pulled. It really galls me that people like Martin Weiss recommend people get into inverse ETFs. I can’t believe a smart man is that stupid and would do people such a disservice. Using put options is another matter but most people don’t have the knowledge and skill to use them wisely and many of the same risks are present.”

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