Loading ...Inflection Point
Not only did the 11 year Bull market end in Feb. but I believe we are at a major inflection point. Similiar to the market tops in 1972-73-Nifty Fifty, 2000- Dot Com, and 2007- Real Estate Bubble, the extreme concentration in the FAANGS + MSFT, TSLA etc. has led to the typical over valuation in a small number of stocks usually seen at major tops. Regardless of whether the market just tests the March lows or continues lower in a grinding Bear market, there should be a major change in money flow going forward. I believe the out performance by the top largest cap stocks has ended and they will now see a steady relative decline in performance compared to dividend paying value stocks and eventually, smaller cap stocks as well. My preferred way to take advantage is to Buy PSQ, the ETF that is the inverse of the QQQ’s. If we do get a test of the lows, I have a few high quality dividend payers that I want to accumulate for the best total return prospects over the long term.
My observations would be dabbling around in PSQ will likely prove to be a painful frustrating experience. Better to play the longside in the gold market and whenever energy bottoms.
If one is a viewer of RealVision they have well chronicled your sympathies with this being a secular turn. I would suggest watching Kirol Sokoloff’s interviews over the past year.
Plunger, thanks for the feedback. No argument about being long gold. Only frustrating playing PSQ if you were long it during the 11 year bull market. I was not. As my thesis states, I believe this is the turning point. Since I am not looking to actually short anything, I will use PSQ.