Sorry, dear readers, for the huge gap in new articles. Numerous outside issues had to be tended to before we could make any new posts. Everything looks to be squared away for now and we’re back to making new online content.
2 major changes to be aware of:
- Future articles will tend to be more sporadic. That means fewer fluff posts (just trying to crank out one a day) and more need-to-know lessons and news.
- We will likely start doing specific stock analysis. It seems the only thing many people we’ve spoken to want are stock picks. So now you’ll get a few. The best (highest potential return) ideas will be preserved for private clients.
- We will TRY to make the lessons to be even more simplified. Some people have complained that the articles are too long and hard to focus on. Again, private tutoring is available if things run over your head.
Now here’s what you need to know about the markets:
Bitcoin and other crypto-currencies have nearly doubled since March. Why? Because while you weren’t looking the big boys started buying in. This means hedge funds, banks etc. They’re trying to establish positions as crypto usage takes hold as a TOOL, not a fad. That means what crypto was originally intended for is starting to take shape. Our clients were told to buy in to 4 – 6 different coins on March 21 and the returns since that date all range between 38 – 99.5%. Not bad for a 2 month return.
President Mango Mussolini has re-ignited the trade war. In all fairness, he’s actually not completely wrong in threatening tariffs. Apparently china tried to re-neg on the last few months of negotiations and actually tried DELETING pages in the agreements hoping they would still get signed. Trump threatened tariffs, then China threatened back. The result on both sides was a swift bitch slap to the markets. Rest assured, this is only temporary. It’s almost exactly the kind of thing that acted as a catalyst in late 2018 and look how we rebounded. This isn’t a time for panic selling. Of course, that doesn’t mean you shouldn’t be holding some cash and hedging like a responsible investor.
Gold has simmered around the $1,300 zone for quite some time. While this annoys the piss out of us at times, it means the metal is going through consolidation. Consolidation is a stand still sideways trend while building up energy for a big move up or down. Our bets are on up obviously. As people grow more worried about the market being overpriced, trade war issues, inflation, etc gold tends to act as a sort of portfolio insurance policy. Typically, Worry = Good for Gold. Gold stocks have been up and down in a general bull trend and just FYI; they generally take a while to catch up when gold makes a move up. The higher prices commanded by the metal itself means profit margins increase, which means stock earnings calls get better and better. More gold and precious metal lessons coming soon…
What are the best areas of investment in the markets?
As a catch up gift for reading this boring shitpost, the following is a ranking of market sector* strength from best to worst. Real estate is the strongest performer, energy the weakest. The easiest way to see what kind of companies are in each sector is to click on the link that starts with X and then go to holdings. Buy/Sell accordingly.
- Real Estate (Residential and Industrial real estate are king at the moment) (XLRE)
- Technology (XLK)
- Communication Services** (XLC)
- Consumer Staples (XLP)
- Utilities (XLU)
- Consumer Discretionary (XLY)
- Industrial (XLI)
- Financial (XLF)
- Healthcare (XLV)
- Materials (XLB)
- Energy (XLE)
Glad to be back.
*Sector is basically just a way of saying “type of business”
**Most of the stocks you probably pictured (Google, Facebook, etc) when you read technology actually fall under communication services. Go look at the holdings for the etf XLK for technology and XLC for this sector.