The True Performing Assets In This Market: A Quick Overview
Now that every forward-thinking growth investor got beaten to a pulp, we can look back on our calls from last Sunday to review. What to watch this week: Silver, China, EM, SQ, BTC.
Now that every forward-thinking growth investor got beaten to a pulp, we can look back on our calls from last Sunday to review. Activision was top on our list before being acquired by Microsoft in all cash that Monday morning (up 28%). The Brazil ETF (EWZ) we mentioned was up 4.58% last week on the backs of easing Chinese policy and EM outperformance. Lastly, Silver was up 5.38% and continues to outperform both the S&P and Gold. The steady players make it through the bear market, unskilled managers regurgitate the news like birds and get crushed.
An important market development: China is beginning an monetary easing cycle, while the rest of the world is starting their tightening cycles. China (MCHI), looks ripe for a reversal and will drive further outperformance in emerging markets overall.
What to watch:
All eyes on Powell & FOMC Wednesday and Q4 GDP numbers on Thursday.
Precious metals continue to outperform with Silver in the lead.
China & Emerging Markets outperformance
Bitcoin will serve as one of the more important indicators for macro markets over the next couple of months.
Real yields remain a real pain and the greatest threat to the QQQs.
Banks and the Russell are gone.
SQ is wildly oversold but has a ton of underlying Bitcoin Exposure. Still positive
We are oversold. Remember, our “cash is a position” write-up from Nov 29th? Utilize some of it.
A Relative Rotation Graph: Tech Bouncing Back
We’ve been pounding the table on Silver over Gold for some time. A true winner. $23 will be a tough spot to breakout but definitely doable.
China wants to be higher during their policy easing cycle. What timing!
Block Inc (SQ): Extremely oversold, down 60% from highs. Promising at these levels.
A look into Bitcoin’s breakdown. $32k is the zone to watch.
“Man looks in the abyss, there’s nothing staring back at him. At that moment, man finds his character. And that is what keeps him out of the abyss.” - Lou Mannheim
