Investing Wisdom: Be the Friend of Market
Hello everyone! Today i want to share some trading ideas with you!
Ok so we have:
1. Paul Tudor Jones: "2027 is going to be a very challenging year for the market."
"I'll be short the whole year."
Just when two months ago he said he "just bought more AI stocks and that the AI trade has another year to run."
2. Michael Burry: "The stock market is in its first stage of grief which is denial."
This guy has missed the entire AI trade.
3. Blackrock: Downgraded US equities to neutral "to manage potential volatility around the AI buildout."
4. Ray Dalio: Called the AI boom a "classic bubble" whilst missing out on the entire AI trade.
vs
1. Goldman Sachs: Upgraded its position on US equities to overweight on better valuations post recent pullback.
2. JP Morgan: Continues to highlight AI driven earnings supercycle expecting ~30% $SPDR S&P 500 ETF Trust(SPY)$ growth again this quarter.
3. UBS: Remains bullish into the year end on AI infrastructure.
4. Citadel: More positive on US equities into Q4 post reset
5. David Tepper: Still heavily in the AI trade with 40% of his portfolio sitting in $Amazon.com(AMZN)$ $Micron Technology(MU)$ and $Taiwan Semiconductor Manufacturing(TSM)$.
The truth is there's so much noise in the market today and so many different ways to view it.
I'm personally still long, but of course cautious. My buying has been pretty slow for ~6 months now aside from my well-timed adds on $Coinbase Global, Inc.(COIN)$ for example and averaging down on some AI infrastructure names I remain very bullish on like $Applied Optoelectronics(AAOI)$.
The best thing you can do here is:
1. Ensure you have a more diversified portfolio.
The summers deleveraging event saw so many investors get burnt. If you're holding names across healthcare, commodities, AI infrastructure, robotics etc etc then the rapid rotations in and out of sectors doesn't hurt you as much.
2. Give the market time.
Right now everything is noise.
$Invesco QQQ(QQQ)$ $SPDR S&P 500 ETF Trust(SPY)$ $NVIDIA(NVDA)$ $Advanced Micro Devices(AMD)$$Marvell Technology(MRVL)$ and all the other important charts show no signs of any bullish structure being broken right now. As long as that stays the case, my bullish bias remains.
Listen to whoever you want but many "superinvestors" have been consistently wrong for the last 1-2 years and I suspect they may be consistently wrong for the next 2+ years as well.
Remember that if we do get a correction, that doesn't mean those who called for a correction two years ago were right.
They missed out on hundreds of percent of potential gains for a 15-20% short win.
Zoom out. Ignore the noise.
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