Warren’s Warning

The Legion Begins! I am excited to begin working with each one of you one on one. Thank you to all of you that came to our amazing event and congratulations to those who attacked the value of my founders’ offer…

In a week’s time we saw the VIX signal both long and short.  

While that might sound crazy, it is not.  In times of market stress, the signaling can get a bit more hazy.

With the S&P 500 having a disastrous March followed by a monster April the market might not be in correction territory.  But it certainly is moving that way.

I want to put this in context of a big event over the weekend, the Berkshire Hathaway annual meeting

With Buffet having his annual meeting over the weekend I think we see the exact conundrum that many investors are facing.

If the market had stayed where it was in March, I think we would have seen Warren talking about some of the investments he was interested in.

Instead algo’s drove the market higher on the backs of 5 stocks.  

I think a lot of the investing community is alarmed that Warren has little interest in accumulating stocks even in the names he loves (I was surprised he did not buy a lot of KO).

With Warren sitting on the sidelines, it has me thinking this is NOT over and we could absolutely see the S&P take another dip.  

It won’t come with an 80 VIX, but we might see 50 again.

The week ahead, I think sets up to be a red week, with the VIX maybe making a run back above 45.

We continue to like selling puts in the S&P 500 that are WAY out of the money.

We also like ‘Omaha investing’ selling puts in the stocks we really want to own. 

We notably like selling puts in Warren’s Company BRK/B

Your Only Option,

Mark Sebastian

P.S. – As states begin to open up this month my family and I pray for you and your loved ones safety as we come together as a nation.

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