Phil & Ephmen85: I hadn't thought about selling the covered calls. That should be the easiest strategy for me since I'm a beginner. Thanks a bunch!
JWick1981
Phil- I want to let you know that you really helped me make some money this morning when I probably would have lost on my own. I was stuck in doctors waiting rooms most of the morning starting at 8AM. By following the game plan you laid out and using my smartphone, I went short on oil whenever we got to 61.50 and long at 61 waiting for the spikes ahead of inventory. When 10:30 rolled around I was out after selling longs at 61.60 a few minutes earlier. I went short at 61.75-61.80 and voila, rode it down to 60.60 or so. Thank you.
craigsa620
Thanks Phil for helping make this a much, much better year this year than last. Your tutelage has been so very helpful. Don't think I can say Thanks enough. And I thanks all the members here who were work hard in helping us all to become better traders, and I would say better people as well. The support many of you offered when we evacuated during the fire this past year helped me immeasurably.
Happy New Years to you all!
JBur
Aapl/Phil
Thanks for your advice, always appreciated.
So, not so much a tax issue, but more to protect against a 5% or greater drop.
Here is what I did before their earnings…sold 25% of my stock at 147.50
Against the rest, I sold the June $140 calls for $8.25, protecting down to $140 if needed.
And just for fun, I bought the weekly $145 puts for $1.50( small price to pay if they bombed on earnings)
So, overall, I am happy with the insurance I was able to 'generate' for 1% of the price of stock.
Now, depending on what happens, I have the luxury of deciding and being in the driver's seat with respect to whether to sell and buy your spreads or not.
Having done all that meandering, I must say it was fun!
More important, I could not have done something like that 2 or 3 years ago and reading and thinking about your teachings has been a tremendous asset.
Thanks!
Maya1
You are doing a fantastic job. I think most of us our very well balanced and consequently have learned how to manage through these ever so short declines in the market without panic.
Dclark41
Phil...The hundred grand portfolio updates are helpful...Fun ..and have been profitable...really like em... made some nice entries into USB, KEY today... and I better add those FAZ calls tomorrow... Really glad you put that up this morning...
Becker
Thanks to your teaching and guidance, I was able to make a killing on my /TF shorts. I averaged into 12 shorts at 1252 and got out of 6 at 1242 and 6 more at 1235. Last week I did the same with /CL, though I got out too early and left $2 on the table. Thank you!
Japarikh
USO, QQQ- Phil, thanks for these plays. Out of USO for about 65% gain today and just keeping 1/4 QQQ.
Ksone88
In options trading, one must remain flexible with the ability to adjust to take advantage of the unexpected moves in the market. It is like chess - spend most of your time strategizing the next move. A good understanding of options is necessary to change direction and make adjustments as the market moves against you. I have a friend that honed his option skills while a member of Phil's elite membership over a period of two years. With the education acquired, he made over $2 Mil in that period, trading options and following the plays put on by Phil. If making money is your goal, then he is the go-to guy, as he knows option strategies better than anyone, and market timing is also a skill he has mastered.
1234gel
This is my first month here. Today was a money train with futures. I gained 7500 USD with KC, RB, CL, NG.
I took RB almost every direction up and down. And I only used 1 contract or maximum 2.
Thank you. I think it was a good investment to subscribe…
Kgabor
PHIL: The most important lesson I have learned is how to hedge using SQQQ, SDS and TZA. A big thanks.
IHS4God
Well I want to thank P. Davis for his style and for the fact that he affirmed my thoughts for a correction. He was right and his confirmation of my bias saved me thousands. Mr. Davis is amoral when it comes to money. He realizes the poor are screwed but we must fight to win. A measure of sarcasm and dark humour and it is great reading. 100% right on the correction.
Chaffey
Phil,
thank you for the thorough response(s). I joined this group last week to take my education to the next level. the school i am involved with very good at calling out levels but very little live trading and little help in managing a position going against you.
I like the combo of knowing where the major levels are coupled with your approach to getting in. learned a lot this week.
thank you!
DawnR
I traded with Phil for approximately three years, and consistently averaged 80% returns yearly... some of which was due to my skills as a trader, but much was a direct result of what I learned as a member of Phil's site.... both from Phil, and the many talented traders that hang out there. Phil... if you are reading along... thanks, again for the approximately $ 3 mil I made tagging along with you.... in order to make you feel good for the work you did... I gave the government 50% of it all, so you made your contribution....
1234Gel
I must give kudos to Phil for changing my way of thinking. I'm a gambler by nature and used to just play the indexes with 3x etf's… well I still do, but the options give far better returns than I ever dreamed of. With these wild swings I've been catching 50-100% winners in days.
Mkucstars1
Phil: I am always able to figure out your trades, including the rational when put in the right context of previous comments, etc. Keep doing what you're doing. It is much appreciated, and invaluable. Your hit rate of successful trades has been very high in my 1.5 months as a member, but even more importantly is your teaching of how to repair and DD positions that haven't gone your way yet. As with most members, we all have our ‘pet' trading interests, and learning how to think about trading is much more important than a specific trade, which could see the conditions behind it change an hour later. This is the classic case, of ‘Teach us to Fish', rather than just giving us a fish once in a while. Thank you!
Neverworkagain
Phil is a master at keeping you laughing, as well as making you money. - It is like " laughing all the way to the bank!"
Gel1
Thanks Phil, your note at the close was responsible for making those silly GOOG sellers pay for my NYC sojourn, nice!!
zeroxzero
Thanks Phil, I have adjusted my position by getting rid of the IYF puts, and selling the FAZ puts. You have so many of these awesome little tricks in your playbook that it really amazes me. I toally love your analogy by the way: Do you want insurance that you have to pay for, or do you want insurance that pays you?
Craigzooka
What a great post today, Phil. A veritable feast of ideas! I've been reading your posts for years and have modeled my whole trading style after yours. You should be taking 2 and 20 off of me at this point ????
Jablams
I have an under 50k account that im trading I dont do all the trades but pick and chose to keep diversified.
With what Ive learned from being a member I average $400 to $800 per week trading futures
BertII
That was a quick double on the DIA calls. trailing stop in place.
Kwan
Hi Phil,
Thanks for the free disaster hedge ideas. I implemented variations of two of them on SDS bull call spreads and EEM bear put spreads (haven't done the TZA yet) and they really hedged my short term longs nicely today. Makes it seem a lot less like gambling.
You are the man (of the people)!
Howard Roake
Phil… My portfolio, in the past few months, has acheived a high degree of stabilization. I've noticed that on up days, down days, even days, it doesn't matter, my portfolio rarely varies more than 2%. And over the long haul it just slowly increases in value. I attribute this not to investment choices, but to style. Thanks to you and others on this site I'm paying close attention to position size, delta neutrality, downside protection, and concentrating on selling premium rather than buying it. I've developed increasing patience, not having to trade daily, or even weekly. I'm concentrating on the finer points of trading, letting the profits come to me, rather than the other way around. I appreciate the help everyone here has given in getting me focused on this principle. I'm pumped!…in a calm sort of way.
Iflantheman
WISH TO EXTEND A BIG THANK YOU! I netted about $18,000 on the short Jan puts and the annualized ROI/M is mind boggling! Hope to meet you some day and buy you and your significant other a nice dinner.
Best Regards
Newt
Newthugger
I did the same thing via your logic (sold puts that is). I glanced one time and they were already up 15% which is considered a good return for an overnight hold in most circles. This is PSW though and to us it's just another day…
Kwan
Maya, After years of being pretty good at picking stocks I still managed to lose almost as much as I made.All the reading Phil asked us to do as a new member (And everything else I can get my hands on lately) has revealed my Achilles Heal.Good stock picks do not necessarily make money. My problem was swinging for the fences. Since becoming a member Jan 1 this year and getting into to scaling into small trades I am amazed at the steady profit growth I have experienced already while not worrying about getting killed. And having fun doing it.. Phil, Thanks for the education, the help you give and the chance to learn more and get better. Also thanks to all the members who have answered the few questions I had when your not around.
Ricpar
I have to say, hands down, this is one of the best educational experiences I've had in my life. I've even gotten my wife (accountant) into the webinars and she wants to master this concept of selling premium and making smart, conservative investment decisions. She'll eventually use this knowledge to manage her clients' wealth and make smart investment choices for them. Bib big thanks Phil!!
AmalfiCoast
Best year I've ever had…sitting on a 52% YTD return. I would also echo Nat's shout out for Phil's talent. I've been a member for the 6 years or so. Just stay true to the strategy I've learned over the years of selling premium, keeping the bulk of my portfolio in long-term buy writes ("armchair" trades).
JJennings
Thanks to Phil (again) for the lessons on the art of the roll, selling premium and hanging tight under fire (particularly in the first hour of trading-MADNESS). Watching you manage the $25KP has really helped my trading in a big way.
On an all-new episode of What Are Your Thoughts, Josh Brown and Michael Batnick take on the biggest topics on Wall Street this week, including:
*The “pressure cooker of uncertainty” has many investors waiting with cash for the election to be over.
*Amazon is actually losing market share to the old category killers like Best Buy and Walmart, who are getting good at ecommerce.
*YOU ASKED: What should my strategy be, investing or trading?
*Which would produce the biggest rally, a vaccine approval or a signed stimulus bill?
*What’s the deal with ARK Innovation ETF sponsors taunting everyone in Value-land?
*What should we make of Affirm and the other “buy now, pay later” technologies – disruptive for credit cards?
*QQQ inflows and outflows have been wild this year – is options activity the most likely reason?
Best-selling author and scientist David Brin shares another excerpt from his book, Polemical Judo, about the current war against democracy and how we can fight back. (Read the first, second and final chapter at the Contrary Brin Blog, and an excerpt from chapter 5, The War on All Fact People, here, and an excerpt from chapter 10, We are Different, Different is Difficult, here.)
For the longest time, Donald Trump had one issue in which he led Joe Biden… "The Economy." And it drove me crazy! If there is one issue for which the evidence is overwhelmingly open-and-shut, it is the almost perfect record of better economic outcomes across the span of Democratic Administrations versus Republican ones. And yet, no DP politician seems remotely capable of making such a case, in debate or even in position papers.
Finally, last week, polls showed Biden pulling ahead on economics, as well. But no thanks to self-gelded Democratic Party polemics!
“For as wealth is power, so all power will infallibly draw wealth to itself by some means or other.”
– Edmund Burke (1780)
In August 2019 a coalition of executives representing some of America’s largest companies issued a statement that redefines “the purpose of a corporation.”[1] No longer…
Zoom zoomed past Exxon in market cap yesterday. At some level that makes sense as Zoom is the fuel for 2020 economy. Between alternative energy and COVID, I have no idea if Exxon can regain past glory.
Next up…
JC does a fun weekly show with me where we talk about the markets and a few favorite ideas, and his team does a great job of slipping in great edits to make it funny and worth sticking around. Here is this week’s episode.
Someone on Twitter had fun with the video and put this photo together with the tagline: Howard (when his portfolio was banks and energy) and Howard (when his portfolio went all digital).
I believe the biggest long term beneficiaries of Covid will prove to be category leading brick and mortar retailers. By this I simply mean brick and mortar retailers who have dominant share in a category — whether it be home improvement, general merchandise, electronics or any other retail category. Their destiny has likely changed forever. Many of the perceived Covid winners such as e-commerce, videogame and streaming media companies have simply been pulled a few years forward into a future that was inevitable. Their destiny did not change. The future for those businesses simply accelerated whereas the future for category leading “brick and mortar” retailers has changed dramatically as a result of Covid, more so than for any other business of which I can think. It is likely that food delivery and videoconferencing companies are also permanently advantaged due to Covid, but the change in ultimate outcome is not as extreme as I think it will be for category leading brick and mortar retailers.
It’s time to revisit that scene from the movie, The Big Short, where Steve Carell, playing Mark Baum, is sitting in the audience at the American Securitization Forum and interrupts the speaker on stage who has just stated that he expects subprime losses “will be contained at 5 percent.” Baum loudly asks: “Would you say that it is a possibility or a probability that subprime losses stop at 5 percent?” The speaker says: “I would say that it is a very strong probability, indeed.” Baum sits down but then begins to waive his arm in the air, forming a zero with his fingers. Baum then shouts out: “Zero! Zero! There is a zero percent chance that your subprime losses will stop at 5 percent.”
You can view the scene from the movie below.
That scene came to mind when we graphed the loan loss reserves at U.S. banks through the second quarter of this year, using data from the St. Louis Fed. (See above chart.)
Consider us on record as waving our arm in the air and shouting that there is zero, ZERO! chance that the megabanks in the U.S. are properly reserved for what comes next.
Doing business in China can be a difficult and contentious proposition for companies in many countries. Yet even with charges of intellectual property theft, forced partnerships and tight restrictions on doing business, China continues to attract foreign capital. Why do businesses want to invest in China when there are so many other “business-friendly” countries and financial markets that support foreign investment?
The Chinese premier delivers the government work report at the Great Hall of the People in Beijing.AP Photo/Ng Han Guan, Pool
In 2001, after becoming a member of the World Trade Organization, China promised to open up its banking, telecommunications and electronic payment processing sectors. But action in these areas has been nonexistent or, at best, half-hearted. The Chinese telecommunications industry, for example, remains under government control, and the government has barred Facebook and Google from offering their services in China.
What’s in it for investors
Doing Business 2020, a publication of the World Bank, ranks China – in terms of the availability of credit and the ease and magnitude of tax payments – 80th and 105th, respectively, out of 190 nations in the world. Using 10 other indicators, such as protection offered to minority investors, registering property and enforcing contracts, China ranks 31st out of 190 nations in the world for the…
From the unintended consequences files: The Financial Times reported over the weekend that Federal Reserve higher-ups are considering beefed-up regulation to combat risks associated with the current low-and-lower interest-rate regime.
Boston Fed president Eric Rosengren told the FT that “if you want to follow a monetary policy. . . that applies low interest rates for a long time, you want robust financial supervisory authority in order to be able to restrict the amount of excessive risk-taking occurring at the same time.” Neel Kashkari, president of the Minneapolis Fed, added: “I don’t know what the best policy solution is, but I know we can’t just keep doing what we’ve been doing. As soon as there’s a risk that hits, everybody flees and the Federal Reserve has to step in and bail out that market, and that’s crazy. And we need to take a hard look at that.”
A pullback in market interventions may be one way to limit moral hazard. Thus, a report last Thursday from the Congressional Oversight Commission recommended that the Fed wind down its Secondary Market Corporate Credit Facility (SMCCF) bond purchase program initiated during the teeth of the spring panic, explaining that: “Given the Federal Reserve’s success in buoying corporate bond markets and recognizing that primary market investment-grade corporate bond rates are now below pre-pandemic levels, the Commission does not believe that further secondary market corporate bond purchases through the SMCCF are necessary.”
Indeed, this year’s severe economic shock has visited no lasting damage on financial assets, with the stock market near record highs and credit spreads not far removed from their pre-virus levels, while year-to-date junk bond issuance reached $351 billion on Friday according to Bank of America, some $30 billion above the prior high-water mark set in the 12 months of 2012.
To be sure, animal spirits are percolating: This morning, Caa1-rated satellite…
I was on stage with Cathie Wood last fall for a conference at the Bloomberg headquarters in NYC. The topic? Using social media to build influence for your investment firm.
My perspective was “It’s time for me to start pulling back, I don’t even enjoy it anymore. People are miserable and angry and jealous and mad at themselves and I don’t want to be around it anymore.” Cathie was like (I’m paraphrasing) “F*** that, we’re going full speed ahead on Twitter, we’re using it to be provocative and to meet new sources of information and to differentiate ourselves from passive growth funds.” Those weren’t her exact words but she was ready to roar on Finance Twitter. I was like, get me the hell out of here.
Fast forward a year – I’ve basically deleted my presence there, best decision of my life. Never been happier. She’s ridden the wave of fame that’s come along with her ultra-bullish Tesla position into a full-fledged cult following. Good for her and her ETF firm, ARK Investments. I found her to be serious, courageous and intellectually curious during that hour we spent together on stage. Glad it’s worked out.
But now maybe she’s taking things in a trollingly bizarre direction where they don’t necessarily need to go. Smashing value investors, innovation doubters and other non-believers over the head with shade in the below video, which hit the ARK Twitter feed late last week…
As technologies emerge & transform entire industries, investors in traditional benchmarks may face more risk than ever before. Don’t miss our brand-new white paper highlighting the “Bad Ideas” investors should avoid over the long-term!
So now she’s got to contend with the TSLAQ crowd AND the millions of beleaguered old school value people who have nothing to show for all their self-flagellation over the last decade. Why stomp on a hornet’s nest that’s already fallen out of its tree and been dashed on the ground?
Maybe that’s why I’m so relieved to be out of the barrel. The fact that someone would deliberately
I remember Black Monday because my first job after college was at a brokerage firm in Toronto in the ‘wire room’.
I was a casualty of that ‘Black Monday’…the firm was a casualty as well.
Off I went back to graduate school and I wish I had BTFD (bought the f@#kibg dip) that day as the Dow dipped below 2,000!
Today the markets look quite different.
The Dow is over 28,000 and most of the business is electronic.
Onwards….
As Always, Ivanhoff and I tour the markets and check in on momentum. I take a look at some of my stocks that have been acting very well ($mcd, $fslr, $aaxn).
Disclaimer: All information provided is for educational purposes only and does not constitute investment, legal or tax advice, or an offer to buy or sell any security. For full disclosures, click here.
E.F. Hutton Story on Front Page of New York Times, May 3, 1985
On May 2, 1985 the highest law enforcement officer in the United States, the head of the U.S. Department of Justice, Attorney General Edwin Meese, held a news conference to announce that the sixth largest brokerage firm on Wall Street, E.F. Hutton, was pleading guilty to 2,000 felony counts of wire and mail fraud. It had also agreed to pay criminal fines of $2 million and up to $8 million in restitution to the 400 banks it had defrauded. The fraud had lasted less than two years, from July 1, 1980 and February 28, 1982, and consisted of the following according to the Justice Department:
“The essence of the charges was that Hutton obtained the interest-free use of millions of dollars by intentionally writing checks in excess of the funds it had on deposit in various banks.”
On the following day, Friday, May 3, the New York Times put that story on the front page of its newspaper.
Now, carefully consider what happened three weeks ago.
On September 29, 2020, the U.S. Department of Justice sent out a press release announcing that it was bringing two criminal charges against the largest Wall Street bank in the United States. No press conference was held. The press release indicated that JPMorgan Chase had committed “tens of thousands of episodes of unlawful trading in the markets for precious metals” and “thousands of episodes of unlawful trading in the markets for U.S. Treasury futures and in the secondary (cash) market for U.S. Treasury notes and bonds.” The bank agreed to pay $920 million in fines and restitution.
We're caught in a trap
I can't walk out
Because I love you too much baby
Elvis Presley’s rendition of Suspicious Minds topped the record charts in 1969. The lyrics portray a romance that couldn’t work, but was also impossible to escape. That’s also a good way to describe our relationship with government debt. We know it can’t last, but we can’t walk out. We love government spending and its benefits (like Medicare, Social Security, and unemployment insurance) too much.
In other words, we are in a debt trap. Our political process can’t reduce spending and/or raise taxes enough to balance the budget, so the debt grows and grows. As it does, paying the interest plus the accumulated debt load pulls more capital away from more productive uses. This depresses economic growth, thereby generating even more spending and debt.
This has to end, and I think it will do so in the event I’ve called The Great Reset. When I first started talking about The Great Reset, we weren’t in the debt trap. We were “merely” in a situation with only bad choices. I didn’t think we would make them. Thus the underlying presumption was that we would end up in a debt trap.
The Great Reset will be our escape from the debt trap. While there will be some winners and (probably more often) losers, it won’t be fun for anyone. And it all springs from the debt trap.
Today I’ll talk about how we got into this trap, why we can’t escape without completely resetting the taxation/spending structure, and what it is doing to the economy. Let me warn you: Some of this will get political—but not in the way you might expect.
Whatever your persuasion, you aren’t going to like this. Nor should you.
Diverted Capital
I have the great privilege of being able to talk to some of the finest economic minds in the country. Rarely a week goes by that I do not spend significant time on the phone with Dr. Lacy Hunt. He and Van Hoisington write in their most…
While everyone is familiar with the exploits of the notorious vol trader Ruffer LLP, better known in the market as "50 cent" for his penchant for buying deep OTM VIX calls which while usually expiring worthless, occasionally make a killing, such as the $2.6 billion the fund made during the March crash when VIX soared, a new and heretofore unknown player has emerged in the vol space. And because this particular trader's bet appear to be on a reduction in volatility Perhaps we can call him minus 50 cent?
According to Bloomberg, which first reported the mystery trader's exploits, so large w...
Tuesday, October 20, 2020 | Stamford, CT USA — Although day-to-day aspects of the foreign exchange (FX) market have largely returned to normal, disruptions caused by the COVID-19 pandemic will have a lasting impact on market structure and functionality.
On an all-new episode of What Are Your Thoughts, Josh Brown and Michael Batnick take on the biggest topics on Wall Street this week, including:
*The “pressure cooker of uncertainty” has many investors waiting with cash for the election to be over.
*Amazon is actually losing market share to the old category killers like Best Buy and Walmart, who are getting good at ecommerce.
*YOU ASKED: What should my strategy be, investing or trading?
*Which would produce the biggest rally, a vaccine approval or a signed stimulus bill?...
Time to see what happens to the Dow post US elections.
The Dow Gann Angle Target 3 (from 2007 top) is on the table, and what a ride that will be. The FED went BRRRRR is all the fundamental news you need to know. Gann angles are very good tool to see how the masses are pushing price.
Click for popup. Clear your browser cache if image is not showing.
The last two US elections saw Bitcoin and the DOW rally well for 6 months, due to stimulus. The most bearish 2020 US Election case for the markets is a Biden win with the Senate and Congress controlled by the Democrats, somehow this blog feels that is very unlikely. So what could go wrong!
US treasury bond yields have been trending lower for over 3 decades. Could the latest drop mark a significant low for bond yields and interest rates?
In today’s chart, we can see that interest rates have had several spike lows and highs, but that each low is lower and each high is lower. That’s the definition of a downtrend. BUT, each of these spike lows has resulted in big rallies within the downtrend channel. And each of these lows and subsequent rallies have been marked by significant momentum lows (see each green line and shaded box).
So is it time for short-term yields to rally?
Looking at the current set-up, we can see that yiel...
[Visit Dan’s COVID Charts to see these amazing animated charts and more. Fortunately, Dan broke his Twitter hiatus to share his work.]
People say I should break my 12-year Twitter hiatus to share my latest animated COVID chart. It compares state cases factoring in partisanship since June 1, when science had proven methodology as to how to stop the spread after the initial sucker punch. ...
The sale and promotion of derivatives of bitcoin and other cryptocurrencies to amateur investors is being banned in the UK by the financial regulator, the Financial Conduct Authority (FCA). It is a...
By Jacob Wolinsky. Originally published at ValueWalk.
There is no doubt that the use of technology to support client engagement initiatives brings both opportunities and threats but this has been brought into sharp focus this year with the COVID-19 pandemic.
The crisis has brought to the fore the need for firms to enable flexibility in client engagement – the expectation that providers will communicate to clients on their terms, at their speed and frequency and on their preferred channels, is now a given. This is even more critical when clients are experiencing unparalleled anxiety from both market conditions and their own personal circumstances.
Our Adaptive Fibonacci Price Modeling system is suggesting a moderate price peak may be already setting up in the NASDAQ while the Dow Jones, S&P500, and Transportation Index continue to rally beyond the projected Fibonacci Price Expansion Levels. This indicates that capital may be shifting away from the already lofty Technology sector and into Basic Materials, Financials, Energy, Consumer Staples, Utilities, as well as other sectors.
This type of a structural market shift indicates a move away from speculation and towards Blue Chip returns. It suggests traders and investors are expecting the US consumer to come back strong (or at least hold up the market at...
The numbers of new cases in some of the hardest hit COVID19 states have started to plateau, or even decline, over the past few days. A few pundits have noted it and concluded that it was a hopeful sign.
Is it real or is something else going on? Like a restriction in the numbers of tests, or simply the inability to test enough, or are some people simply giving up on getting tested? Because as we all know from our dear leader, the less testing, the less...
Philip R. Davis is a founder Phil's Stock World, a stock and options trading site that teaches the art of options trading to newcomers and devises advanced strategies for expert traders...
For the longest time, Donald Trump had one issue in which he led Joe Biden… "The Economy." And it drove me crazy! If there is one issue for which the evidence is overwhelmingly open-and-shut, it is the almost perfect record of better economic outcomes across the span of Democratic Administrations versus Republican ones. And yet, no DP politician seems remotely capable of making such a case, in debate or even in position papers.
A pair of Bloomberg headlines, concerning Brazilian President Jair Bolsonaro:
A pullback in market interventions may be one way to limit moral hazard. Thus, a report last Thursday from the Congressional Oversight Commission recommended that the Fed wind down its Secondary Market Corporate Credit Facility (SMCCF) bond purchase program initiated during the teeth of the spring panic, explaining that: “Given the Federal Reserve’s success in buoying corporate bond markets and recognizing that primary market investment-grade corporate bond rates are now below pre-pandemic levels, the Commission does not believe that further secondary market corporate bond purchases through the SMCCF are necessary.”
Elvis Presley’s rendition of Suspicious Minds topped the record charts in 1969. The lyrics portray a romance that couldn’t work, but was also impossible to escape. That’s also a good way to describe our relationship with government debt. We know it can’t last, but we can’t walk out. We love government spending and its benefits (like Medicare, Social Security, and unemployment insurance) too much.
German
Spanish
French
Italian
Portuguese
Japanese
Korean
Russian
Chinese
Philip R. Davis is a founder Phil's Stock World, a stock and options trading site that teaches the art of options trading to newcomers and devises advanced strategies for expert traders...
Ilene is editor and affiliate program
coordinator for PSW.