The last few months has certainly has been one of the most gut wrenching rollercoaster rides that I have ever had in any LIC, it has been quite unbelievable except that we have lived it
I actually drew down a line of credit against our house on the way down, though probably two weeks too early, and plouged most of it into lsf and fgx.
This is the wildest riding coaster going, the leverage they are using is huge, the really scary bit is that we are riding in many ways blindfolded, that is not knowing the real NTA until 5 days later and not knowing what we are shorting, those 5 days could see 15% or more NTA and SP movements, that IMO is why the discount to NTA is still so high...its just like a shock absorber
L1 do understand what they are doing and they themselves obviously know how things are travelling in realtime, so are probably comfortable taking this risk. I have been taking some of the chips off of the table the last few days, but still hold a fair bit, they are taking a bit too much risk for my liking, the only reason that I am still as long as I am is the still and persistant discount to NTA and the benefits of them buying back $1 for 75cents...
I think they would have been crapping themselves near the bottom after all they spent $25mill of their own money on the way down, at nearly twice the price that we got too at the bottom of the trough, I dont know if this $25mil was borrowed or not but if it was it was really lucky that there was no margin call on it or we may not have witnessed the amazing and exhilarating accent from the abyss that we did
Anyway, I am short the dow and nasdaq (at 10,000) again, I dont mind taking risk, but I hate not knowing the risk that I am taking...It is a lesson learnt for me
cheers grant
LSF Price at posting:
$1.47 Sentiment: Hold Disclosure: Held
(20min delay)