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Amazing thread here about the types of ways you can get paid from direct investments into small & medium-sized businesses (Click to read):
- Stock buying by retail investors has pushed equities sky-high throughout the summer. Blue-chip US stocks alone are up an impressive 20% this year. Be watching out for the retail flow to slow or stop (if you start seeing material outflows from equity ETFs in particular), and prepare for the downtrend. Read more here.
- As the workforce returns to the office, commercial service companies are sure to see an uptick in the market. Bullish on companies that lead in hygiene/sanitation, water treatment, corporate uniforms/apparel, safety/cleaning products, security, etc. In the pandemic world we live in, these are not likely to downtrend anytime soon. Read more here.
- Fidelity announced that there are 700,000 new accounts for investors aged 35 and younger that opened in just the 2nd quarter. The company plans to hire 9,000 more tech and service-oriented roles to accommodate the flux; a good sign that more young people are investing (about time they wised up). With the internet and access to new technologies, we’re seeing the dawn of a new generation of wealth. Exciting times ahead. Listen in for more here (12:09).
- In politics - Biden losing in the polls because of “Afghanistan debacle.” Probably not the only reason. To taper this, he’s pressing his legislative agenda and redoubling efforts to combat the Covid-19 pandemic. He is expected to focus heavily on his infrastructure and anti-poverty legislation in the coming weeks. Like the magicians of old tout…misdirection is gold. Read more here.
WHAT TO WATCH
- Acronym of the day: GPU, Graphics Processing Units. Anything that scales with the GPUs ecosystem should be a winner with the dawn of the metaverse on the horizon. Artificial Intelligence, Virtual Reality and Augmented Reality all use boatloads of GPUs. In the future, GPUs will be rented/used as a service. Keep your finger on the pulse of companies that manufacture the chips and equipment used to manufacture chips, as well as the main GPU companies (AMD, NVIDIA, possibly Intel). Read more here.
- NFT’s are the new Rolex (there we said it). We’re bullish on NFTs right now, so be prepared for us to keep sharing news updates as they pour in. NFTs as a percent of crypto is around 10-15% of total market cap. A staggering $2T, 200-300B valuation is possible (very exciting). As an investor, you probably don’t need more than 10% of Crypto worth invested in NFTs. Blue-chip NFTs, like Bored Ape Yacht Club and Crypto Punks, are the new status symbol “Veblen goods” (demand increases as price increases). And Visa’s recent purchase (we shared about it here) set the new floor price for blue-chip NFTs. Read again: VISA IS IN ON IT. A valuable read, for those interested in diving deeper into the crypto-world.
- Energy vehicles are still on the rise. Warren Buffet-Backed Chinese automaker BYD quadrupled EV sales in August. The group reported sales of 61,409 new energy vehicles (NEVs) in August, up from 15,283 in the same month in 2020—a 302% increase. We expect all sectors connected to the EV industry will continue to surge upwards. With new EV companies (like Amazon & Ford’s Rivian) and vehicles emerging every day, the tech takeover of the auto industry is imminent. Read more here.
- Reddit on the rise. The company is currently seeking to hire bankers and lawyers to quarterback an IPO in New York after its 10.8 million user-strong WallStreetBets sent markets into a spin earlier this year. This market-disrupting event led to a pump in site visitors and ad revenues, setting the company up for a higher valuation. We’re seeing more and more instances where “the little guys” are disrupting the markets. Signaling moves toward a turning of the tides. Read more here.
“The recognition that all things are transient can fill you with a destabilizing sense that your life (and everything you cherish) is hopelessly precarious. It’s tempting to live in denial. But it’s prudent to acknowledge that we’re skating on thin ice and can never be sure when it might crack.” (William Green, Richer Wiser Happier)
Green interviewed the greatest investors in the world and wrote a fantastic book about it. This might sound doom & gloom but it is, in reality, power — the ability to see the world as it is rather than getting lost in pie-in-the-sky narratives. Keep in mind your own mortality. In doing so, you will actually live longer due to being able to point out your own blind spots.
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