To The Moon

During the bull market, my strategy is to buy great companies at good discounts. I spend time going through their earnings, understanding their fundamentals, and identifying their moat. Once qualified, I “try” to obtain a fair value and take my position. After purchasing, I hope to hold the stocks for a long time, for decades should the earnings continue to demonstrate that their fundamentals are sound. Will this strategy work in the coming recession? Personally, I do not think so as downward price pressures are coming. My “current” strategy in lieu of recession In lieu of recession, I am buying inverse ETFs. It is buying the market to go down but at a lower expense than shorting. It could take a while before the market turns bearish eventually. I am not planning to add to any of my sho

If you ask a day trader, he will tell you to close out all your positions by the end of the day. And this is not without good reasons. Because a day trader is focused only on the short term. For them to make money, they need to be able to monitor and respond quickly to the markets. Thus, holding overnight risk is, for the most part, a strict no for them. But is an overnight risk something that terrible? Well, not if you are looking at the long term. In fact, if you don’t hold positions overnight, you are missing out big time. Your Investments Grow The Most After Market Closed I know this might sound incredulous but the bulk of your returns actually come from moves that happen overnight. To be clear about what I meant, let’s first talk about daily returns. Daily returns are measured from th

Elon Musk, the CEO of Tesla, has stated that the growth rate of the company's energy storage business will exceed that of its electric car business. This statement raises the question of whether Tesla's Megapack will bring exponential growth to the company. Tesla has already deployed significant energy storage capacity in MWh over the years, with deployments increasing annually. In 2017, the company deployed 358 MWh of energy storage, while by 2022, it had deployed 6,541 MWh. Once in full production, the Megapack has the potential to double the company's production capacity to 20,000 units per year. This would mean that Tesla could potentially generate over $50 billion in new revenue, $15 billion in profit, and $3 in earnings per share annually. The Megapack is priced slightly over $2.5 mi