Gentlemen vs Hooligans
Trades in Whisky;
A friend asked me to send him the Gentlemen vs Hooligans chart I published yesterday in The Global Trend Investor. As he is a pro managing billions, I was delighted he noticed. It is such an important chart because it shows you how the nature of this bull market is more speculative, and less based on fundamentals.
High versus Low Volatility Stocks
To explain it, the calm blue stocks are the best businesses in the world. They are generally established and profitable, but the prices are falling. The volatile red stocks are typically younger companies, at the heart of AI and similar racy investment themes. They may be growth stocks, but valuations are in nosebleed territory, and prices have surged.
We can’t ignore this and should accept it is time to rein in the portfolios a little. I am tipping the balance towards quality, and taking profits where I believe it makes sense. 2025 has been too good.
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