No.
You can’t change the music. It’s not your party. It’s a market party and you’re a player, not a planner. Weekly the worldwide market party rolls on. We’ve all invited, but only the savvy can stay. Here’s some savvy. Follow the light.
The market’s retail. Retail stacks most of the good stuff in plain sight. Institutional money sets share prices. They follow the Wall Street spotlight. When no one’s heard of your pet stock, it’s likely not in the light.
Investing is not treasure hunting. Most of the good stuff sits directly in the light, just like in any retail operation. Apple doesn’t hide the iphone in the back. The market doesn’t, can’t, hide the names that work. Dig in the weeds if you want. But truly, there’s little need.
Our broad and glorious bull market thinned. It’s narrow now, surviving solely on FANG/tech. Now that narrow market has become a “technical market.” Gains will come to the few.
We now hear everyday about FAAG–Cramer’s great term. FAAG leads this market–is this market on many days. No secret–FAAG sits in plain sight. STOCKjAW posted a piece “Follow That Crowd” that reminds us that lines do sometimes form directly behind the good stuff. Tariffs, rising rates, increasing raw costs, have collectively created a “technical” market
FAAG provides market leadership. Now it’s even called “defensive.” Call it Jones, but call it into your fold. FANG works. It will continue to work, in our now more difficult stock-picer’s market.
A technical market is often referred to as a “trader’s market.” In a technical market, no longer will entire sectors move up in unison. Only leaders will win. Only those well positioned, and executing, will lead. Trader’s must find wins individually. No problem. Why?
Don’t beat the weeds for obscure wins, especially in our new technical market. The big winners are standing in the light. You know them. Better yet, Wall Street knows them. It’s Wall Street who showers them with money. We only watch and position our baskets.
The market’s full of weeds. Real money is rarely made mucking about the edges. Stick with the fashion show of proven growth. Speculate only with the brightest. The time you spend will be best paid by the best plays. Most are not mysteries. Below find our trend-driven themes. You know them all. That’s not a mistake.
FAAG faces almost zero trade war exposure. How much is that worth? And mega trends? Mega trends are driven by shifts in habituated behavior. And individual behavior has absolutely nothing to do with trade warring. People shop, pay, buy health care, use the net, and game, regardless. Period.
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The eight companies we hold have virtually no trade war vulnerabilities. None require China to thrive.
You know the real players in the game. CNBC talks about most of them. Others exist. Many market leaders occupy thematic trends. The trend is your friend, and even more so as the market faces multiple troubles.
Thanks for reading.
