October 20, 2022
Hello everyone,
A very good day to you all
First, let’s welcome our new members:
Martha Ellis
Kumar Dant
Elizabeth Anthony
Kayode Olagnuju
Wf Mide
Casey Riggs
I hope I haven’t missed anybody out.
This post will summarize John’s bi-weekly webinar, which was done yesterday.
John called the webinar: Whiplash Market (and hasn’t it been just that)
In 2022 YTD John is up 75.88%.
His trailing one-year return is 78.54%
His average annualized return is 44.23%
John says the Bottom is in. (We will bounce around in ranges from here on until the bull market takes off).
- Midterm election noise is about to depart from the news
- We are 9 months into a 12–18-month bear market
- Oil prices continue to fall
- Inflation is plunging – may not show up until later in the year
- Bear market in bonds may be ending with the 10-year rates topping 4.00%
- VIX pops to $35
The global economy is recessionary.
PPI – comes in hot at 0.4% in September.
Non-Farm Payrolls falls short 263,000 in September
JP Morgan sees recession in 6-9 months’ time according to CEO Jamie Diamond.
Supply chain problems are disappearing as two years of port congestion ease.
Unemployment rate 3.5% = 2022 low.
IT’S TIME TO INVEST
Capitulation is near
Sweet spot for LEAPs setting up. (Only get this opportunity 2 to 3 times in a decade) GRAB IT!!!
Look for a strong 2nd half-scenario to continue
Junk Bonds might find a place on John’s list soon.
HYG = 8.2% yield to date
U.S.$ will start to top out around here. Maybe one last dash to the top before exhaustion. Then you can buy the Euro, the Aussie, and the Pound as the U.S.$ falls. (Please don’t do this in the forex market unless you know what you are doing)
LEAP candidates are numerous.
Look at Netflix
ROM
NVDA
TSLA
BRKB
But don’t expect these to go up in a straight line. Put the expiry in 2025.
Bull markets start 6-9 months before a recessionary environment ends.
John also mentioned Snowflake as a stock to put on your list.
U.K. Prime Minister, Liz Truss, is out. She has resigned. She lasted 45 days – the shortest tenure of a Prime Minister ever. So, Britain is on the hunt for its next leader. There is a lot to fix in this county.
Does anyone remember Yes, Minister, the TV series about the minister and how he was controlled by his aides
about what he said and didn’t say,
about what he knew and didn’t know,
about what he could do and not do,
and which areas he should dabble in and not dabble in.
It seems that Liz did not have enough quality aides with the necessary knowledge to direct her properly. And was Liz listening well? It seems there were failures all round.
Rental stress is still a thing in Australia. It is now cheaper to buy a house than rent. People with mortgages are passing on the extra cost to their tenants. The great shift is still going on. People are moving to the regional areas to secure cheaper housing. Small-town neighbourhoods – once thought of as no-go zones are being gentrified. Businesses are moving in and changing the whole environment. House prices are starting to come down.
Wishing you all a wonderful weekend.
Take care.
Cheers,
Jacque
Life’s most persistent and urgent question is, "What are you doing for others?"
-- Martin Luther King, Jr.
