First, I would like to welcome the hundreds of new subscribers that just recently decided to take the plunge by hand selecting the Mad Hedge Technology Letter.
Our services have experienced a record-breaking year as novice investors and seasoned pros seek out the best tech stock ($COMPQ) advice in turbulent markets which have been riddled with high volatility.
There has never been a better time on earth to be human and there has never been a better time to subscribe to this technology content, offering cheat codes to the technology sector.
On the surface, it doesn’t seem that way.
Daily headlines don’t offer a positive spin on the world with energy caps, social unrest, military operations, supply shortages, cost of living crises, and extreme weather delivering us humble pie in many alternative forms.
However, readers must get in tune with the new world of tech investing.
The most essential thing to know is that passive investing is dead in this new world of high-interest rates, a rapidly deleveraging asset bubble, and broken supply chains.
Passive investing is tailor-made for a low volatility, high liquidity and a low-interest rate environment which has been swept into the dustbin of history.
This world basically ended in March 2020.
If readers aren’t actively managing their tech stocks, then you are behind the game as there are new laws to the land in the wild west of tech stocks.
As managers' focus on active management continues to accelerate, investors are becoming more inclined to not only enlist the service of active managers, but to reward them with even greater responsibility, access, and attractive opportunities.
A survey of 125 advisors found that 66% of respondents are more inclined to consider an active manager now than before.
Active advisors are also more likely to be considered in 2022 than passive managers with 89% of respondents saying they are unhappy with their passive ETF performance in 2022.
Almost all show a loss.
The evidence is there for everyone to see.
Investors are migrating away from passive index funds that cannot make money when a basket of stocks go down.
This strategy only works during times of synchronized global growth.
Investors also liked how passive investing was cheap because managers did not have to take profits before an imminent collapse.
Now they do, and I must admit it does create higher execution costs, but would you want to be outright long as streaming services are losing subscribers in an accelerated fashion and constantly giving us downgrades and lower revenue targets?
The truth is that there are a lot of bad active managers out there with a poor track record.
Many don’t know how to time the market, hedge risk, and don’t understand how to analyze or prioritize the large swaths of data that inundate us every day.
The Mad Hedge Fund Trader solves this for you.
Similar to the dynamics of Silicon Valley, risk asset performance is also a winner takes all industry. Tech is even more volatile relative to the S&P meaning even more diligence is required to outperform the Nasdaq.
The shift from passive to active is a paradigm shift that many still haven’t been alerted to.
To top it off, many conservative investors I have chatted to have now been cut off from their go-to industry – real estate.
Readers also won’t be able to effectively invest in real estate with 6% mortgage interest rates and generational high prices with owners sitting on a mountain of equity, boasting 3% mortgages, and nowhere to move if they sell.
For lack of better words, there is no alternative or TINA – which is why there has been an avalanche of interest in how to actively navigate tech stocks.
It’s no surprise that a large portion of our new subscribers come from real estate backgrounds and are looking for new opportunities.
Go where your money is treated best, and I can tell you that you’ve found the right place.
Quit being passive and act fast!
