TOP WIKIFOLIO TRADE
Rebalanced portfolio to hedge against incoming market correction. I have a few reasons to base this on: - The Buffet indicator (composite market value / GDP) is currently around a 2x "fair" valuation (nearly 3 whole standard deviations away from fair valuation) - The reverse repo market is at an all-time-high (above $1 Trillion), nearing the speculated $1.2-1.3 Trillion "tipping point" where the market becomes unstable. Reverse repurchase agreements at this scale are a sign of large short positions being hidden/temporarily covered - The US FED is predicted to run out of "cash on hand" in the coming weeks/months and will default on its debt - The US housing market bubble is speculated to burst/correct soon - The inflation rates are looking very similar to how they looked pre-2008 financial crisis The main way I plan to hedge against the market correction is by pulling out of most of my over-valued tech positions and increasing my investments in shorted/heavily shorted stocks, which must be covered when various financial institutions default. A company with incredibly strong fundamentals is Gamestop. I have never been more confident in a company as Gamestop since Ryan Cohen was announced chairman. It is no longer a brick and mortar company which sells hard-copy games, it is slowly eating up a lot of Amazon's market share and the level of hype is unreal... People love this company and the transformation that it is going through so much that they want to buy their groceries and furniture there... This reminds me of Tesla pre 2020 short-squeeze because many short-sellers valued it as just a car company even though they are a tech behemoth (building electrical grids, leading battery and renewable energy research, etc.). In Gamestop's case I believe the price action will be larger than the Tesla short squeeze by orders of magnitude due to the extent that the stock is currently shorted. Although it is difficult to find out precise numbers due to the short-selling being hidden in the form of married-puts etc., there are indications that the stock is shorted > 9x its float. Gamestop's price is currently cycling every 90 days which means that we are due for a steep upwards trend over the next four weeks.