The H.E.A.T. Formula 12-23-24 ----The Bulls Strike Back?
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The H.E.A.T. Formula is a radically different way to look at investing your portfolio.
H- Hedges, you should always have hedges and be agnostic as to being long or short. Bonds are not a hedge
E-Edges, you should always look for edges. Preferably these are edges with some sort of psychological underpinning, structural edges, or some sort of barrier to entry.
A-Asymmetric. Everything you do, be it trades or your overall portfolio, should be designed so that heads you win a lot, tails you lose a little.
T-Themes. You should always be invested in the top themes. Most everything else is just noise.
We will continue to build out our resources here to help. In the meantime we have a model Hedges and Edges ETF portfolio.
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Our Next Webinar will be January 23,2025 at 2pm EST.
How to Make Money In Markets During 4 Years of Trump
-Three Major Investment Themes Nobody is Talking About
-Why Crypto is a Must Own and How to Trade it With Asymmetric Risk
-Three ETFs That You Want to Almost Always Be Short
-Dangers of Covered Call ETFs and a Better Approach
Register Below:
https://attendee.gotowebinar.com/register/980141392770803292
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Participating in a webinar on January 9th, details below:
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This maybe my only newsletter this week, will be doing some traveling and supposed to be on Mornings With Maria the day after Christmas. Happy holidays to everyone.
Friday morning was looking pretty bleak at first, but the market bounced back, albeit closing well off the highs. SPY had an undercut & rally at the 50 day....
QQQs held the 50 day.....
Equal weight S&P bounced.........
The 10 yr came down, but it's still above 4.5%.....
VIX collapsed. Which just shows why buying puts on the VIX ETPs can be such a powerful strategy after a spike....
Yesterday was a great day to add watchlist stocks that have hopefully bottomed. I bought CARR, which is a second order AI infrastructure name....
Same with DLR.....
And DUK....
I added to HPE...
I also bought WGS, an AI biotech stock that held support at the 50 day...
On the short side I covered homebuilders (XHB) and REITs (IYR).
Themes
Trump Trade
America’s Private Prison Complex Gears Up for Trump Deportation Bonanza-WSJ
Private prisons and other companies that provide detention services are getting ready to cash in on what President-elect Donald Trump has billed as “the largest domestic deportation operation in American history.” That includes scouring for as many detention beds as possible in their networks of facilities, and scouting sites for new buildings to house migrants.
We've been talking about GEO and CXW for a while now. Both look to be consolidating for another move.
AI
‘The next Nvidia’: Broadcom is the AI chip stock to own in 2025, investor says-CNBC
Would like to see it hold the gap up low.....
