What is the keynote of the material plane? SURVIVAL is our most important mandate. In the world of investments– in which one calculates risk vs reward, SURVIVAL is key. This means DON’T LOSE YOUR MONEY! Of course they say “a fool and his money are soon parted.” Some others regard investment into the stock market as a foolish form of wild gambling. If we take a look at the massive gyrations of the ups and downs of today’s stock markets it is hard to keep track of what is common sense– when the value of the Dow Jones Index and the S & P 500 go up in down in extreme swings of volatility, day after day.
Boston Stock Market Imagery provided by Yahoo Finance
So how does one keep their portfolio alive in these intense times of uncertainty. Will if we look at factors like unemployment we have more than 17 million folks who have recently lost their jobs… with more on the way. With the stay at home practices required by the Corona Virus pandemic even folks who have jobs and money have limited means to buy anything. Who is going out to restaurants, clubs, ball games, concerts, or taking a cruise? Earnings are down and banks are faces with mortgage defaults. Is the financial future of the Global Economy at risk? Is now the time to buy stocks?
Of course the stock market historically has been a generator of wealth for many. How does one surf these choppy investment waters? Very carefully as it is easy to lose money quickly. Most of us in normal times are investors– we place our bets on long term growth of companies with promise like Walmart or Disney or Apple or McDonald’s and long term our USA markets tend to go up. Periods of extreme volatility are rare and some of our recent trading days are as volatile as it gets. Other of us are traders and are in to making money now in short order from the fluctuations of the moment.
Today we are talking about tackling the market moves from a trader’s short term view. Folks will generally not recommend a stock like TVIX as it is too volatile and unpredictable for most of us. However if we look at its price points for the last 45 days or so… it was trading at $39.25 on February 19th… and traded as high as $1000 in March. What a phenomenal climb in value in a short period.
Here is its chart as offered by Yahoo Finance TVIX
TVIX closed up $32.29 a share or up 16.27% today according to Yahoo Finance. In after hours trading it went up to a total of $46.90 a share to a value of $245.40, or a total of 23.62% in one short 24 hour period. Simply put, this stock tends to go up when the market goes down and exponentially so. The S & P 500– which it tracks, was only down 2.2%. TVIX per Yahoo Finance: “The investment seeks to replicate, net of expenses, the returns of twice (2x) the daily performance of the S&P 500 VIX Short-Term Futures index.”
“Mr. Money”
Disclosure: I am not an investment counselor, just a maverick investor trying to find insight in a challenging world.
