RE:just out of curiosity is anyone out there worriedBrandonrr wrote: about a major recession and if so how you guys playing defense? I am only asking becuase I have had some really good years and wondering when I should pull some money out into cash. do you think this could effect our SCR stock in the short term??? Thoughts
Brandonrr; here is my thoughts and how I am playing this...
A ($hit) storm (which I am expecting and worried about as well) can sink all ships, so do need to take caution.... here are some steps to make:
#1) Take "PUT" options on SP500 for next 3-4 months so if markets crash and bring down Score with it, you are hedged!
#2) Diversiy your portfolio with other holding that can minimize risk, or hedge your account. This is what I am doing as I additionally "trade/hold" TVIX (volatility), UWTIF (3X Long Crude Oil) I will be taking a position in shortly to offset any spikes in Oil due to Iran situation, JNUG/NUGT (leveraged Gold ETFs as I believe war/recession/fed issues GOLD will continue to spike so could also diversify with some safe plays like Kinross, Eldorado, Barrick, or Kirkland Lake which I believe are the top producers or leaders
#3) Hold Score in a TFSA if Canadian and not give a c rap about short term fluctuations. Although a major recession may have a temporary setback on SP, long term I dont believe it will affect where Score is headed.
Additionally as spoken, in tough times, I believe MORE PEOPLE gamble! Cause desperate sadly. Revenues from Scores Sports Betting app is ONLY GOING TO INCREASE increasing profitability and stock value.
I would be more worried about holding FAANG stock as I believe the bigger high multiple PE technology stocks and some of the biotech sector will get hit hardest.
If you made a killing last few years, NO RISK, is taking some profit off the table, diversifying, having some cash on sidelines (to buy more score if it does a temp dip), and buy a couple holding during turbulent times to hedge risk. TVIX is NOT a hold for the record, it is a short term swing trade and has made me 20-30% in very short periods of time to offset losses in my long term holdings.