Level Up Your Stock Investing 📈

why inaction is often the best action in investing

Since I last wrote to you, a lot has changed in financial markets… The banking crisis has calmed (for now), the volatility index is down by almost half, official inflation data continues to cool, and stock indices have rallied 5-10% across the globe. On Wednesday, Morgan Stanley’s CEO James Gorman stated “In my view we are not in a banking crisis”. Many US banks reported Q1 earnings this past week and so far the stock price reactions have been mostly positive. Bank stock performance in the...

almost 2 years ago • 2 min read

cool heads prevail during a panic

Today’s email is a heavier topic than usual… Silicon Valley Bank, one of the top 20 largest financial institutions in the US, experienced a bank run which led to its seizure on Friday by the FDIC. This has caused panic among remaining SVB clients, which are businesses primarily in the tech & startup sectors. 97% of these businesses’ deposits are above FDIC insurance levels and many of these firms don’t know how they’ll make payroll next week if funds remain in limbo. Media coverage and stock...

almost 2 years ago • 2 min read

The Hype Cycle [Part 3]

Why do some hype stocks become permanent market darlings while others flame out spectacularly? The rise of social media platforms gave birth to at least four successful publicly traded stocks with significant growth in market capitalizations since IPO: Meta (the artist formerly known as Facebook): $100 Billion to $480 Billion Pinterest: $10 Billion to $19 Billion Twitter: $14 Billion to $44 Billion (acquired) LinkedIn: $5 Billion to $26 Billion (acquired) Yet cannabis stocks, which went...

almost 2 years ago • 2 min read

The Hype Cycle [Part 2]

The stock market cares little about the past, but is obsessed with what is likely to happen in the future. For proof look no further than the market’s reaction last week to Nvidia’s Q4 earnings report… Nvidia, a top manufacturer of graphics processors that enable high performance games, servers, and supercomputers reported revenue was down 21% and net income was down a whopping 35% versus the prior year. How did the stock react? It went UP 12% the day after the report was released! go home...

almost 2 years ago • 2 min read

The Hype Cycle [Part 1]

Last week I wrote about skill versus luck in investing. You don’t want to be guided by rookies who got lucky on one risky trade that happened to work out. HOWEVER, that doesn’t mean luck can’t play a role in fattening up your retirement account! Case in point… One of my family members (let's call her Sandra) recently doubled her money on a stock in less than a month. The hilarious part is that Sandra thought she bought stock in OpenAI, the hottest AI company in the world, when in fact she...

about 2 years ago • 2 min read