RocketLab Rockets & Underpriced Growth Stocks Shine

September 29, 2024 Update

Macro Overview:

M2 data for August 2024 has been released, confirming a shift in monetary policy. The restrictive phase ended in April, and real M2 is now trending upward, which is a positive sign for the economy.

Globally, the most significant development was China’s aggressive fiscal and monetary stimulus. The Chinese stock market responded well, closing the week with gains of around 20% on huge volume.

China is working to navigate challenges stemming from an inflated real estate sector, which has impacted domestic demand and debt repayment. Investing in the Chinese market carries risks, but it also presents opportunities, as many companies appear undervalued. Some names I like for their revenue growth, profitability, and valuations are EH, LI, TCOM, RERE, FUTU, PDD, and BABA.

PORTFOLIOS

Underpriced Growth Portfolio:

I currently hold seven half-positions in this portfolio. After two weeks, most of my positions are in the green, with APP, ZETA, and HIMS performing particularly well.

I’ve updated my stop-loss levels for all positions, ensuring that my worst-case scenario would result in a total loss of -13.5% (as seen in the P/L at SL column). This is part of my strategy—starting with wider stop-losses and tightening them as stock prices rise.

This week, I plan to:

Buy 45 shares of $APP if it touches $12. Yes, this means my order will be triggered only if the stock dips and hits the 21-day moving average, currently around $12. I want to add on weakness.

10X Momentum Portfolio:

In my small-cap momentum portfolio, I have one position remaining, which continues to perform well. I’ll close this portfolio as soon as I exit CMPO, for which I’ve also updated the stop-loss level.

My large Cap momentum Portfolio looks like this instead:

My large-cap momentum portfolio is looking strong. RocketLab took off (pun intended) last week, and it’s up 30% in just two weeks.

This portfolio has outperformed the S&P 500, returning 3.4 times more than the index over the same period.

I’ve updated stop-loss levels.

2024 MY PICKS PORTFOLIO

As the month comes to an end, let’s review my seven picks for 2024. Here’s the original tweet with the picks on Jan 1st 2024:

Performance so far: +67%, which is over three times the S&P 500’s returns. There are still three months to go, so let’s see how this portfolio wraps up the year. I’m feeling confident with the cushion I’ve built.

That’s all for the week!

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Important: This is not investment advice. Consult a licensed financial advisor before making any investment decision.