Trading portfolio


New Member
Aug 11, 2020
the fact that I missed out on strong over a decade ago is becoming increasingly relevant. Maybe it was risk of not carrying insurance. In times of market stress and more specifically during times of wide spread panics investors may need to pull money out of their investments for liquidity rather than cash, and many investors choose to move this into illiquid debt investments such as money market funds, or more recently, government or corporate bonds. For many of these buyers, there is no liquidity risk. For people with excessive exposure, it can be rather hazardous. Essentially, once panic ensues, managers will only be able to withdraw cash, in these aforementioned cases at the most improbable times, such as during the day when funds are shut for the day or in a few hours’ time during an incident such as the 857. This at least has made my decision a bit easier. Taking a look at most money market funds there are very limited opportunities to get liquidity. In government money markets funds, asset flows are limited to $5,000 and is capped at $100 million. If there is a run on these funds, all that assets held by the funds can be liquidated at any time. As in ETFs, with money market funds it is best to look at capital gains which are taxed at 15% and/or short term capital gains which are taxed at 39.6% rather than collecting current income. Every now and then, in times of stress, you can make big gains from synthetic asset structures as well as short selling. This is the time to do them, but keep in mind they are illegal and your execution may very well be illegal, as well. My risk tolerance is roughly at half the comfortable level it has been in the past, with a little bit more risk attached to these types of investments and other assets I might invest. Required website for traders