- Bad news can be good news if you have the pattern beforehand and plan for it.
- There is nothing magical in how I would trade it, I have discussed hedging before. The key insight is that we know there will be a tradable pattern beforehand.
- The reason technology led the rally this week is because Powell said even with the hikes the economy will grow albeit slowly. That will make tech great again.
- My confidence in oil as a sustainable investment has grown. I am influenced by the aggressive acquisition by Warren Buffett of Occidental Petroleum shares. The Oracle of Omaha is very big on sustainable long-term investments.
- There is now a variable dividend issued by some oil companies. I think it will gather momentum in the oil patch and I see no reason why it should catch on elsewhere.
For further details see:
Bad News - Fed May Have 6 Rate Hikes, Good News - We May Have 6 Rate Hikes; How To Trade It