When BRX hit $27, I was seriously wondering whether I should lighten my position or at least sell some $30 covered call, but didn’t move quickly. Here are my thoughts around that:
I think the days of stocks going up straight is over; We are going to experience lots of volatility. Volatility doesn’t mean it is gong to crash, but going to be rally and sell-off, etc
Why I think of volatility, I think the Fed has a huge balance sheet and have pumped Trillions and suddenly they are going to stop pumping those trillions and raise rates? May be they don’t raise rates, but even the act of not pumping trillions is like hiking 5 or 6 rate hikes or increase 1.5%. The rate increase or not, the stopping of purchases and any QT (that is Fed reducing their balance sheet) is going to create huge disruption in the market.
So it is time to be nimble. Take some profits, keep some cash ready to deploy.
Are you raising cash?