TL;DR

My value-investing dad suddenly turned bullish, a potential sign of an impending market downturn. I’m looking for smart ways to bet against the market with $32,000.

Story

My dad, a Warren Buffett disciple who researches CEOs more intensely than a second grader trades Pokemon cards, just told me to ditch cash. This is the same guy who always has a hefty emergency fund. He’s now buying xAI shares and reminiscing about missing the Bitcoin boat. Something’s up. This feels like a major market top signal. It’s eerier than when China was hosing down streets during the pandemic’s start, which, by the way, led me to a nice profit on put options. So, here’s my dilemma: I’ve got $32k earmarked for investments. What’s the best way to play a potential market downturn in the next nine months? Any ideas? I’m thinking something like put options on major indices or specific overvalued stocks. Let’s discuss.

Advice

When seasoned value investors start getting overly optimistic, it might be a good time to consider defensive strategies. Research put options or other ways to hedge your portfolio.

Source

https://www.reddit.com/r/wallstreetbets/comments/1hsvk9d/the_top_is_in/