The Bull and the Bear | Wisdom, Wealth, and Wellness
The Bull and the Bear | Wisdom, Wealth, and Wellness
Bull/bear spreads. What does that mean?
When people are super optimistic about the future, they place bets or express optimism about the next three to six months in the stock market – that’s a bullish bet. When people are pessimistic, they might buy options or puts to bet on the market declining over the next three to six months.
So, there are many ways to measure this, either in VIX and volatility spreads, in sentiment, in people’s posturing, or in money flows. The only thing I would say, along with the timeless concept of “be fearful when others are greedy and be greedy when others are fearful,” is to remember that when everyone thinks that a certain outcome is fait accompli, something else is going to happen. It’s just like clockwork.
Now, am I saying you need to trade on this information every day, every week, every month? No, because you’re not going to be a hundred percent right. You’re not going to bat a thousand. The prediction markets, particularly in finance, the best may be right 51 % of the time—to get a marginal advantage.
So, just be cognizant of that information to lean against your human emotions and impulses. And if you lean against your human impulses a little bit, that habit, compounded over time will help you stay healthy, wealthy, and wise.
Just one man’s opinion.
Have a great day.
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This blog post is not intended to be, nor should it be construed or used as, an offer to sell, or a solicitation or offer to buy any securities or interests in any strategy offered by Satovsky Asset Management, LLC (“SAM”). SAM is a registered investment advisor with the Securities and Exchange Commission – for more information see www.adviserinfo.sec.gov. Please remember that different types of investments involve varying degrees of risk, and that past performance is not indicative of future results. Therefore, it should not be assumed that future performance of any specific investment or investment strategy (including the strategies recommended or undertaken by SAM) will be profitable. Market index information shown herein is included to show relative market performance for the periods indicated and not as standards of comparison. The market volatility, liquidity and other characteristics of SAM’s portfolio composition are materially different from the securities listed on public market indices. Market index information was compiled from sources that SAM believes to be reliable. No representation of guarantee is made hereby with respect of the accuracy or completeness or such data. Opinions are as of date of video and are subject to change. A copy of SAM’s current written disclosure statement discussing our advisory services and fees continues to remain available for your review upon request. SAM undertakes no duty to update information presented herein.
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