Last week saw natural gas futures prices in Europe soar 40 percent the morning after Russia invaded Ukraine. And tanker rates on routes that service Russian oil soared six-fold in the space of a day.
These kinds of events are extreme, but they do happen. However, most investors aren’t prepared for extreme swings, instead expecting a more orderly move in the markets. That’s why traders may want to consider hedging any position that could be susceptible to a large downswing. Or look to buy an inexpensive insurance, such as a put option on a market index.
That doesn’t mean completely changing a trading outlook… but it does reflect that uncertainty can cause big swings, and being able to leverage a small position into a big win while other trades are floundering may be a solid strategy for these tumultuous times.
Now here’s the rest of the news:
Could the Fed Kill Gold with Rate Hikes? History Gives Us the Answer
Why does gold face a supposed headwind when interest rate hiking cycles happen? Is it fundamentals? As Adam Hamilton notes, it is little more than panic… [Read Here]
February 28, 2021
“Yesterday’s home runs don’t win today’s games.” –Babe Ruth
Here’s to a better YOU … and now … Today’s DarrenDaily Recap Sunday. A collection of the weeks videos from Darren Hardy. Enjoy!
Naturally beautiful: Lots of things to-do in and see, such as a Humpback Whale off the coast of Newfoundland, Canada.
Our sea neighbour!
February 28, 2020
The coronavirus fears have led to one of the fastest market declines in history. In the span of one week, the market has slid nearly 12 percent, hitting correction territory.
On a technical basis, things look even worse. Shares have gone from trading over their 50-day moving average to testing the 200-day moving average. We expect the market decline to slow after the recent beating, and start to trade in a range until the fears subside. But if the market closes materially lower from that average, stocks could be in for a painful time.
February 28, 2017
In 1939, a young trader named John Templeton bought a bunch of stocks trading around $1 a share.
Four years later, he didn’t just become a millionaire…
He became a billionaire, even though some of the companies barely budged.
And he spent the rest of his life living in the sunny, carefree Bahamas.