Time to dip the toe in the market waters.
Why the market narrative may be already changing.
This is a quick update to let you know that I am adding today to my portfolio POTS.
My plan is to share more details over the weekend.
Why I am adding to the POTS now?
Oil and commodity prices trend is changing, going down
Inflation may be picking and we may see some signs on July 13th CPI reading
Consensus is that inflation is peaking because global demand is going down (=recession is coming)
Then, if so, the hawkish monetary policy from the FED may very likely become less aggressive sooner than later
The bond market is pricing already lower interest rates which open the door to allocate more capital to higher risk assets like stocks and growth stocks
What can go wrong?
Inflation does not slow down enough
Recession comes and we enter in a stagflation scenario
The market keeps going down for some more time
What am I doing?
I am adding today to the following positions to my 10X FREE CAPITAL POT:
ETSY ($ETSY)
SNAPCHAT ($SNAP)
DIGITAL TURBINE ($APPS)
ZILLOW ($ZG)
PELOTON ($PTON)
BLOCK ($SQ)
The reasoning is these companies offer the best risk/reward within the Portfolio and the charts looks like they have found a bottom or are very close to a bottom.
Risk management
Adding a Stop Loss to each position at, say 10% or 15% below the purchasing price is a GREAT idea.
I am starting to ADD again to the POTS as my way to re-start my DCA (Dollar Cost Averaging). In my case, if the market keeps going down for some more time, I’ll keep adding slowly to the most promising positions.
My POTS are designed to be an “invest and forget” mechanism and for the very long term.
What about the 10X SMALL BETS POT?
I am adding to that POT too. A separate email will hit your inbox soon (paid subscribers only).
Nasdaq Weekly Chart
Nasdaq still in a downtrend. It looks like it has found an area of consolidation (red box).
Oil Prices
From around 120$ per barrel we have approached 100$ per barrel.
-
Important:
this is not investment advice. Consult a licensed financial advisor before making any investment decision.
-