Before I get into the title for this post it would be crazy not to talk about the markets. A few facts about this market correction from Ryan Detrick
The S&P 500 closed 6.66% away from the highs yesterday. After today is it 10.2% away and officially in a correction. February 2016 was last time it was in a correction.
and because you will only get tweets from Fat Nixon (Trumpf) when the market is going up:
This is the first time in history the S&P 500 went from a new all-time high to 10% correction in 9 days or less.
It’s messy out there and the finger pointing will begin. In fact, I am calling Jim Cramer a moron in the title.
I don’t really think Jim is a moron, but he does play one on TV.
He is smart and says dumb things (like me).
Today he called me a moron and I take issue with it…
Jim works at the network that created ‘Fast Money’ and he runs a daily ‘lightning round’ yelling stock picks with no accountability. His audience IS the people he is calling morons. He is having his ‘deplorable’ moment.
With regard to his accusations, I have read hundreds of emails from people that were destroyed financially. You won’t see burnt out homes or flooded towns, just a lot of negative balances at brokerage accounts.
These people might have been speculating, like me, with what they believed was a portion of their money, but if a lawyer had read them the prospectus 10 times, they never would have seen the wave that hit them.
Buried in the prospectus is a few words describing an event after 4 pm that could take the ETN to zero.
I was being quoted prices at 3-50 pm that might has well been emoji’s.
The SEC has basically blessed a product from a group of degenerate bankers and mathematicians that is NOT suitable for any portfolio at any time. Here is the definition of ‘suitability‘ from Investopedia.
If the brokerages are willing to have a box to check specifically asking ‘Are you a Moron’…just maybe.
No retail investor is suited to own a product like $XIV. Period.
Also published on Medium.