
Don’t Short A Bubble
You don't want to short bubbles.
That might sound counterintuitive. After all, if not bubbles, what
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For me, Nvidia is one of those fish that get away in every investor’s life. I bought it for $30 years ago and later sold it for $75 because it got flat and its actual business future was too concentrated for my taste. I made money enough but my opportunity loss was large.
A couple times in my youth I got concerned the market was too frothy, had a nice profit and I got concerned I’d lose it so I bought some market puts for protection. Got rinsed and I never tried it again because I discovered that unless you could sell both sides, it wasn’t really a hedge, just an expensive insurance premium when there was no loss to save.