If I have a contribution to make here, it is to get people (including myself) to think clearly about what they are doing. When you have to commit to paper what you believe, it forces you to confront fuzzy thinking. There are times when a method of investing works, even when we don’t quite understand it. At those times everything seems fine until all of a sudden, it doesn’t work and the world comes crashing down. No doubt, if you are old enough, you have seen what I’m talking about. When you have an understanding of why what is working, is actually working, then you may realize earlier that those conditions no longer hold, and it is time for a change.
As of this moment, I believe that I can continue selling puts on stocks that I would like to own (at some time in the future) and selling calls once they are put to me. Were the economy really to regress and not just grow slowly, I would reconsider my scheme. I know that I wouldn’t want to own companies that were really shrinking, as opposed to growing slowly (in this type of environment.) Were this a faster growing economy, I would be pickier about whether I would own a slower growing company.
Especially since this is an election season, there is a lot of extraneous noise. But it seems to me that most of the world is still in the slow to moderate growth stage. Yes, I’m aware that there are parts of Europe that are actually shrinking, but even there, for the most part, it is recession not depression.