Disclaimer: Your capital is at risk. This is not investment advice.
This feels like one of those moments when the stockmarket is about to soar. I don’t mean the index necessarily, but the cheap stuff that is all around us. When I look at popular large caps, I find them terrifying and struggle to see why anyone would own them. We don’t. It’s not just big tech that could damage your wealth but the defensives too. Between them, they make up the bulk of the stockmarket.
Value Versus Growth
I think another momentum crash is underway, and I will cover it in The Multi-Asset Investor on Tuesday. Markets are back in risk-on mode, and the old leadership is not interested. It’s overvalued, and it’s exhausted. That is the result of trillions of dollars of institutional money chasing liquidity at a time of uncertainty. There’s no one left to buy.
This is the best time to be an active investor. It’s rich pickings as we scoop up all the undervalued companies the institutions left behind. The blue line is peaking, while the red line is just getting going. Be on it.
A (Very) Busy Week at ByteTree
I made four recommendations this week. An investment trust was added to the Soda Portfolio, a German stock in Whisky and two UK small caps to Venture.
- The Multi-Asset Investor: Healthcare and Discounted Private Equity
- Venture: Mid-Cap Engineering
- Venture: Mid-Cap Bank
Robin and Rashpal saw a rally ahead but didn’t like the fundamentals. In their latest AAA Report, and in contrast to my views, they still want to embrace quality stocks. That said, we were in agreement on gold, which is on the verge of an all-time high.
I covered gold in Atlas Pulse and paid tribute to Charlie Munger and his silver trade in 1997. It has been a bad week for great men. It wasn’t just Charlie Munger; we lost Henry Kissinger and Alistair Darling. May they rest in peace.
Since it is the end of the month, we have just rebalanced the BOLD Index, which has seen the Bitcoin weight jump once again as its volatility keeps on falling.
Finally, in crypto, which, as usual, preceded the strength we are seeing in equities, things are picking up. ByteFolio has been well-positioned and is heavily invested, having been cautious a few months ago. But it’s not all fun, as Ali explains in his deep dive into Binance in Token Takeaway.
Have a great weekend, and make sure you subscribe to Venture,
Subscribe to Venture
Venture is included in the Morris on Markets and Professional Investor bundles. View our Premium plans below.