Some new data has come in and we don’t like it one bit so it’s time we batten down the hatches, lower the sails and drift in the open sea. Since the start of the new year, we’ve been selectively selling naked puts to take positions in our favorite defensive stock portfolio and some additional stocks that we haven’t disclosed yet. With the nuclear threat escalation, we have decided that the best play is to close out as many of our naked put positions and move to mostly cash position.
We aren’t liquidating our entire portfolio, what we owned before we will continue to own for the time being but we won’t be taking on new positions until after March’s FOMC meeting and let this Russia-Ukraine mess sort itself out.
While the probability of things getting way out of hand are low, they are not zero. We don’t expect a full nuclear exchange between super powers but all it takes is one nuke to send global financial markets into a total tailspin.
The best thing to do right now is observe and proceed cautiously.
Stay tuned and stay solvent..