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It Pays To Keep Cash On The Side
Stocks have rocketed back from their June lows. But, there may be trouble on the horizon.
Corrections can happen at any time, and it’s good to keep cash on the side.
While it’s just fine to set aside money in a savings account, today’s article examines two alternative strategies. Ones which allow you to better prepare and profit from market dips.
Both techniques are as simple as clicking a few buttons, yet they can help you get acquire wonderful businesses at a wonderful price.
Or, get paid to wait during an overvalued market.
Strategy #1: Limit Orders
Everyone knows Michael Burry, the famous investor who made billions shorting the U.S. housing market. Nobody knows Howie Hubler.
Hubler shorted subprime mortgages, just like Michael Burry.
And he made money, just like Michael Burry.
However, Hubler also hedged his position by selling credit default swaps. And these collapsed so far and so fast that Hubler couldn’t get out of his position.