A mini lesson on stocks:
✅Pandemic hits: investors flee to “safety:” stay-at-home stocks.
✅ Prices rise. FOMO investors join. Insane valuations follow.
✅ Original catalyst goes away.
✅“Safety” stocks bleedout
✅ Savvy managers return to original portfolios/out of safety (1/4)
✅Pandemic hits: investors flee to “safety:” stay-at-home stocks.
✅ Prices rise. FOMO investors join. Insane valuations follow.
✅ Original catalyst goes away.
✅“Safety” stocks bleedout
✅ Savvy managers return to original portfolios/out of safety (1/4)
✅ In 2021, that seemed to be large/mega caps. $QQQ/$SPY. Typically deemed “safe always,” companies like $AAPL, $MSFT, $GOOG, etc
✅2022 Catalyst: #Fed #inflation fight and war catalyst (contributes to inflation and has not reduced demand in USA
✅New “Safety” Trades Emerge (2/4)
✅2022 Catalyst: #Fed #inflation fight and war catalyst (contributes to inflation and has not reduced demand in USA
✅New “Safety” Trades Emerge (2/4)
✅Wheat, corn, nickel, oil, gas: commodities in general not only rise due to disruption, but due to “safety” investment.
✅Prices rise.
AT SOME POINT IN THE NEAR FUTURE:
✅These safety trades will bleedout. They always do. Be careful.
What do you do?
(3/4)
✅Prices rise.
AT SOME POINT IN THE NEAR FUTURE:
✅These safety trades will bleedout. They always do. Be careful.
What do you do?
(3/4)
You have two choices.
1️⃣Recognize you’re in a safety trade. Set downside limits and trade out when catalyst and momentum ends.
OR2️⃣Use the fear as an opportunity to buy your long-term winners: Like $TSLA, on sale.
Diamond hand long-term winners.
Do not #diamondhand momentum.
1️⃣Recognize you’re in a safety trade. Set downside limits and trade out when catalyst and momentum ends.
OR2️⃣Use the fear as an opportunity to buy your long-term winners: Like $TSLA, on sale.
Diamond hand long-term winners.
Do not #diamondhand momentum.
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