Soluna 9% preferred is an interesting speculation. It is very difficult to suggest buying the shares as there could be events beyond the company’s control that cause Soluna, the company, to go through bankrupcy. Personally I still hold a cup half full view for Soluna Holdings.
The market rotates between rally phases and correction phases. Normally the rally phase is longer in time while corrections are shorter in duration. This can also be called Risk-on trades and Risk-off trades.
Risk-on trades would include Growth stocks, Crypto, most equity sectors like Bio-tech, Genomis, Semiconductors, and Emerging technologies suce as Cathie Wood’s ARK mutual finces. Risk-off trades would incorporate Precious metals (miners and physical metals) Consumer staples, Value stocks and high quality dividend paying stocks like Utilities and Pipeline companies. Ten-year and shorter Treasuries are also considered Risk-off trades.
If we select a Risk-off asset like Physical gold or Large Cap Gold miners, we can divide that ETF into any number of Risk-on vehicles (like the NASDAQ 100) and come up with a ratio as to which ETF is outperforming the other. This is important to track as “The Market” is likely to be more volatile and shift from rally to correction phases for shorter periods of time (three to six month cycles) than it has in the past. Each phase can be very volatile in its moves within short time periods. Currently Risk-on is in favor, see chart below, for the NASDAQ 100 and Biotech/Genomic areas, and risk-off in areas, like gold and silver, are out of favor. The ratio above the moving averages is positive for Risk-on vehicles (numerator) and a ratio print below the moving averages is positive to Risk-off vehicles (denominator). Continue reading
Free Enterprise has given way to Crony Capitalism in the USA
Crony Capitalism – an economic system in which businesses thrive not as a result of free enterprise, but rather as a return on money amassed through collusion between a business class and the political class. This is often achieved by the manipulation of relationships with state power by business interests rather than unfettered competition in obtaining permits, government grants, tax breaks, or other forms of state intervention over resources where business interests exercise undue influence over the state’s deployment of public goods, for example, mining concessions for primary commodities or contracts for public works. Money is then made not merely by making a profit in the market, but through profiteering by rent seeking using this monopoly or oligopoly. Entrepreneurship and innovative practices which seek to reward risk are stifled since the value-added is little by crony businesses, as hardly anything of significant value is created by them, with transactions taking the form of trading. Continue reading
“Hard times create strong men. Strong men create good times. Good times create weak men, and, weak men create hard times.”
― G. Michael Hopf, “Those Who Remain”
Cynical:
1. Believing that people are motivated purely by self-interest; distrustful of human sincerity or integrity.
2. Concerned only with one’s own interests and typically disregarding accepted or appropriate standards in order to achieve them.
Inconvenient Truths:
Are you a diversified investor when you own the S&P 500?
Underlying guiding thoughts on buying stocks that can double.
April 19 price action for many of the Biotech and Genomic names in our watch list was strong. We are early in sharing this but want to get you acclimated to a potential opportunity.
LOTM has been watching this group for some time. They fell from a greatly over-valued price for the entire group in February 2021. Now we are about twenty-seven months later. The stocks have been through the stage four chart pattern. They are now in a stage one chart pattern.
We will use Cathie Wood’s ARK Genomic ETF as a measuring stick for the industry below. One reason we targeted the Genomic industry is that they are literally changing the healthcare world. They move great distances in price, up and down. They appear to have been washed out from their drop in price from Continue reading
Bitcoin and Alt-coins are leaving a stage one base-building chart pattern and entering their stage two rising price stage. Link here to Investopedia for a discussion of Stage Analysis. Blockchain application companies are lagging slightly but also attracting money in-flows. See Mark Yusko’s comment on the generational shift of inheritance into Crypto instead of Gold or paper currencies, for “The biggest transfer of wealth in human history. IMHO, you want exposure to crypto and blockchain companies.
Example of Stage Analysis:
