Portfolio Insurance Returns, 1987 !!!
I wasn’t going to say anything today, but I for some reason turned on the CNBC Fast Money Halftime show. It seems that even they are blown away by Door Dash IPO pricing. Hasn’t opened yet. Anyway they seem to be nervous as to whether the Robin Hood types are getting a little carried away this morning and realize they also own a lot of stuff that is grossly overpriced.
What should they do?
Obviously getting out is unthinkable, things are going to be so great after we all get the vaccine.
So the recommendation is sell stops. This allows them to not have to make a sell decision. If they get stopped out, it was the market that took them out, not their confrontation of pricing. They can be bulls forever.
What can happen, the 1987 template..
A 50 to 60 percent decline over two to three days. Should be a bounce after that.