If market volatility is giving you the summer blues, now is as good a time as any to make sure you’re investing according to your risk tolerance. Not anybody else’s.
When the Situational Awareness hedge fund took a major hit in July, it got caught on the wrong side of leverage. That’s the risk taken when borrowing money to juice returns. When prices move against your holdings, banks will come knocking for their money at pretty much the worst time.
That’s similar to what investors in private credit are doing when they demand their money back and create a bank-run type of situation for managers who are forced to put a cap on redemptions.
Action Line: We’re seeing plenty of opportunities in today’s markets for treasuries, and it’s still not too late to get your lazy cash working. When you’re ready to talk, let’s talk. Email me at ejsmith@yoursurvivalguy.com. And click here to subscribe to my free monthly Survive & Thrive letter.
