Step 1) Get Drafted. Step 2) ??? Step 3) Profit 🚀🚀🚀😎
it looks like the USA is getting ready to draft the kids again. Help me think of ways to play this to maximize profits.
I think the best way to do this is OTM TLT leaps. Think about it: when the USA invades Russia, the USA will issue war bonds. Do you know how much interest the USA can afford to pay? None! This means interest rates will have to fall.
With the fate of the free world and my portfolio at risk, JPow will have the perfect excuse to lower rates to deeply negative real yields. This means TLT should go much higher than we have ever seen!
Additionally, with a bunch of bombs being dropped and WWIII in full swing, the rest of the world will most likely sell their local assets and flee to the safety of the US dollar. This will force rates even lower, as foreigners will be willing to lose some capital to inflation rather than invest in factories that may not survive the Russian invasion.
Strategy: OTM TLT Leaps. I am nibbling now and will all in the moment we have boots on the ground. $140 TLT C 1/20/2024
Also: don’t talk to me about military contractors. We will see massive P/E compression and any company making “too much money” off the war will be shamed and cut off.
Foreshadowing WWIII draft: https://imgur.com/a/eZC2VS2
Something extra for the kids: https://imgur.com/a/V0d29w3
Submitted March 25, 2022 at 07:39PM by GME_200K
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