Latest Stock Buy or Sell?

Educational Segment. Inflation on the shorter term horizon is going up but the longer term number is relatively low. However, longer term expectations are now rising. If prices become unanchored, people will go buy today instead of in the future. There has been no meaningful change in terms of inflation in 5 years. This is why the Feds think it is transitory. If inflation goes up, PFIX could offer a hedge to inflation, as well as IVOL.

The market maker has natural arbitrage. Over history, things have drifted but typically this is where there are derivatives or problems with the underlying asset class. There is little worry about dislocation with a large index.

The issue is it only has $5M in the fund. Not clear yet in terms of what it means as an investment story. Tesla is one of the biggest holdings. He is unsure if there is value there.

It is a buy low, sell high strategy. The target is 6%. Good for yield seekers who do not want to take risk and see volatility. The yield is sustainable.

He has issues with fixed income. You need fixed income to have a stable return. However, bond yields are so low that this part of the portfolio is impaired. Fixed income in the foreseeable future is not something investors should have. Need active strategy to deliver value in fixed income.

Uses leverage and if markets go into risk off, then it could be really bad. Incredibly volatile instrument. Not for the average investor. There is a big yield, but you need to be ready for significant volatility.

Likes the banks for trading. As the yield curve steepens, there are trades to be made. If you are the leveraged type, it could be fine for short trading. Often, investors are not able to get out and it tends to become long term holds. Need to be disciplined to trade over days and weeks. There is natural erosion and the net asset erosion is work if it is more leveraged.