The H.E.A.T. Formula
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Our Next Webinar:
Topic: How to Determine the Best Potential Investment Themes.
When: Oct 24,2024 11:00 AM Pacific Time
Register in advance for this webinar:
https://zoom.us/webinar/register/WN_nicbiSSlTwqTDXqOmfd1cA
Why Things Like Factors, Asset Classes, Styles, and Market Cap Diversification are Stupid.
Why most thematic ETFs suck.
How to use first-order, second-order, and third-order thinking to pick stocks and ETFs with the best potential upside.
One below-the-radar theme that could end up being extremely relevant regardless of who wins the election.
For Investment Pros Only
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Brendan Wood TopGun™ ETF +37% In 46 Weeks
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Rates continue to move up since the FOMC lowered 50 bps....
CPI was slightly higher than expected and the Fed's Bostic talked about skipping cuts at the November meeting. Time will tell what this ultimately means but does seem like investors think that inflation risks are underpriced and that the Fed may have to be more hawkish than anticipated.
Three Fed Officials Shrug Off CPI Report, Bostic Open to Pause-Bloomberg
The outlier on Thursday was Raphael Bostic, president of the Atlanta Fed. In an interview with the Wall Street Journal he revealed that, in projections released in September, he had called for one additional quarter-point cut this year. The Fed has two remaining meetings in 2024.
Three-quarters of Americans struggling with bills because of inflation
The report from LendingTree highlights that 76% of Americans report inflation and the current economy making it harder for them to afford paying their bills this last year. On top of that, 45% of those struggling said they have had to pay a bill late in the last 12 months… Another 48% said they’ve paid three or more bills late in the last year… The report also found that 50% of Americans have suffered an overdraft on their account while paying a bill
The market didn't seem to like what it saw....
Musk Shows Off Driverless Robotaxi to Be Priced Under $30,000-WSJ
Would be watching the 50 day moving average.
Themes
European Defense Stocks
As Conflict Spreads, Will Defense Stocks Regain Their Cold War Allure?-WSJ
Defense is also a low-hanging fruit for the European Union’s new industrial strategy: By 2030, officials want members to buy 40% of their military hardware collectively, and to direct 50% or more of their procurement budgets toward European suppliers.
EUAD is scheduled to launch 10/21
Weight Loss Drugs
Novo and Lilly contender Zealand Pharma heralds its obesity drug alternative: It’s our ‘crown jewel’-CNBC
Something to watch. Zealand has an ADR that hardly trades here.
AI
AMD launches AI chip to rival Nvidia’s Blackwell-CNBC
In the past few years, Nvidia has dominated the majority of the data center GPU market, but AMD is historically in second place. Now, AMD is aiming to take share from its Silicon Valley rival or at least to capture a big chunk of the market, which it says will be worth $500 billion by 2028.
I don't own AMD but something to keep an eye on.
AI Power Generation
Ormat Technologies Inc. Secures Land Parcels in Nevada's BLM Auction to Advance Future Geothermal Development
Argentina
Argentine names look like they are starting to break back out.
Asymmetrical Risk
Junk Bonds Are Starting to Look Risky, but People Can’t Stop Buying Them-Barron's
Junk bonds are an awful investment. Limited upside and a lot more downside than other types of bonds.
