November 13, 2022

 

Saturday Afternoon, November 12, 2022

Hello everyone,

It has been a huge week – mid-terms, inflation report, Twitter, and the FTX collapse.

There are still undecided seats in the Senate leaving it on a knife’s edge.  49 all now.  We are still waiting for clarity in Georgia and Nevada.  Republicans are in front in the House, (211 – 203) but it still looks very close and even if the Republicans win here, it will be only by a very small margin.

So, we can look forward to gridlock and not many policy changes getting through.

The inflation report sent stocks on a mighty rally.  Just an inkling of lower inflation created a euphoria in the market.  The U.S.$ cratered, while GOLD bounced, but Bitcoin dropped to new lows on the back of the FTX bankruptcy. 

Twitter has certainly been walloped by Musk.

Is he trying to send the company down a black hole?  Maybe he wants to destroy what was seeking to destroy TESLA.  The tweets were not kind to TESLA and it seems Musk is now dishing it back to the company in spades.

It’s been a bad week for Sam Bankman-Fried.  A billionaire on Monday and a bankrupt on Friday.  Not an enviable position.  FTX says it is now investigating ‘unauthorized transactions’ that are believed to have taken place in the exchange. $1-$2 billion of investors’ funds has been reported missing. Figures from Singapore -based analytics firm Nansen showed a one-day net outflow from FTX of about $266 million, with $73 million withdrawn from FTX U.S. alone.    Could it be a hack that initiated a run on the exchange early in the week?  Whatever the case it will take a while to pick through the ruins and sort it out. FTX, affiliated crypto trading firm Alameda Research and about 130 of its other companies have filed for bankruptcy court protection from creditors in Delaware, FTX said on Friday.  When you have customers withdrawing $6 billion in crypto tokens from the platform in just 72 hours, you kind of get the feeling that something is not quite right. I know people who had their funds in that exchange, and they have lost a lot of money. 

John tells us that 2023 should be the year of the big reversal.  Plunging interest rates – after the Fed overshooting on the upside – will create a huge tailwind for stocks but deliver a large knock to the U.S.$ which is expected to collapse.  The Euro (FXE), the Aussie (FXA), and the Yen (FXY) will all rally to the upside. Tech stocks will bottom and then take off for new highs.

If you’re still scratching your head wondering where to put your funds, then look at this list here that John compiled. This is a summary.

Rivian (RIVN) – ($34)  Rivian is widely believed to be the next Tesla.  Its R1 vehicles start at under $70,000 and can travel more than 300 miles on a single charge.  To learn more about Rivian, please click here.

Ark Innovation Fund (ARKK) - ($40)

Cathie Woods' high-tech fund is down 80% from the 2021 top.  The largest holdings include Tesla (TSLA), Roku (ROKU), Exact Sciences (EXAS), Intellia (INTL), and Teladoc Health (TDOC).  To learn more about Ark Innovation Fund please click here.

ProShares Ultra Technology ETF (ROM) – ($27)

This is a 2X long technology ETF which gives you an extremely aggressive position across the tech sector.

Holdings include:

Apple                 19%

Microsoft         16%

Alphabet          10%

Google              10%

Nvidia                3.5%

And 120 other smaller names.

ROM shares are down 67% this year.

To learn more about ROM, please click here.

Palo Alto Networks (PANW) – ($165)

Hacking is recession-proof.  Stocks like PANW will always be in demand.  That’s why there are not many dips in the stock price. To learn more about his stock, please click here.

Salesforce (CRM) – ($157)

This cloud-oriented software company is right into customer relationship management.

Fortune 500 makes up its customer list. Salesforce focuses on sales, customer service, marketing automation, analytics, and application development. The stock is down 55% in a year.  To learn more about Salesforce, please click here.

Update:  Democrats take Nevada.  They take the Senate.

Have a wonderful week.

Take care,

Jacque

 

In the end, it’s not the years in your life that count.  It’s the life in your years.  - Abraham Lincoln.