At this point, I don't see any positive outcome for the stock market. The market has priced in a increase in the debt ceiling. However, I believe everyone will be disappointed when it happens. After all, the spending issues won't be addressed, the deficits will continue rise and job growth will remain stalled.
I don't think there will be financial Armageddon but I think the economy and the stock market may be ugly for quite a while.
Therefore, I continue to keep my short positions and plan to add more short positions next week. I will also consider selling the remaining stock options that are due in 2012 and 2013. I would prefer to reduce my income taxes by selling the options in 2012 or 2013, but I think the expected market decline will erase any tax savings from waiting.
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This is not financial or investment advice. Please consult a professional advisor.
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I went almost 200% long on full margin at about the same time you started shorting. The market rallied for 2 weeks. I suggest you read "How to make money in stocks" by William Oneil. It opened my eyes to what actually works in the stock market.
ReplyDelete@ BC,
ReplyDeleteLooks like you made the right call on the market. Congratulations.