My Top 5 Surprises This Week

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From the Desk of the Moonshot Investor

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For day traders, this week must have felt like an eternity. Not since March 2020 has the S&P 500 index averaged a 3% change per trading day.

Reddit traders have similarly swung between greed and despair. On Tuesday, a JPMorgan report found that young traders bailed out at the bottom of the market. Coinbase fund flows would paint the opposite picture the following day.

Throughout the volatility, long-term analysts like Luke Lango and Louis Navellier have stayed the course. If you’re buying game-changing stocks and cryptos, even the best picks can take 3… 5… 10 years to play out. You should expect some bumps along the way.

But those with a tactical bent will see the Fed’s “Taper Tantrum” as a signal to rotate into shorter-duration stocks (i.e., investments less affected by rising interest rates). Even though quantum computing and electric vehicle (EV) stocks might change the world, sometimes it’s better to wait a couple of weeks before jumping back in.

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The Five Surprises of the Week

1. Lamborghini and Bentley Pivot to Electric

This week, two more automakers joined team electric by announcing plans to ditch the internal combustion engine in several years’ time.

Petrolheads immediately rolled their eyes — perhaps Lamborghini could do a crossover with its tractor business too?

But don’t be fooled. Lamborghini and Bentley have both made beautiful transitions before. The Urus SUV might look terrible (and are largely driven by terrible drivers), but I’m told by our managing editor that it’s actually quite good. Hopefully, Lambo’s electric vehicle lines will also score high marks.

2. Grimacecoin Spikes 285,000% After McDonald’s Joke

Elon Musk’s exchange with McDonald’s (NYSE:MCD) spilled into the real world this week as the fast food chain tweeted a joke about Grimacecoin, a non-existent cryptocurrency.

But they forgot that we’re in 2022. Internet users immediately created a Grimacecoin for themselves and sent values soaring.

Source: The start of a 285,000% joke (source: McDonald’s / Twitter.com)

The token has since lost 99.79% of its value, staying true to 2022 form. Its legacy as one of Twitter’s strangest crypto jokes, however, will probably live on.

3. Tesla Posts Earnings Beat, Still Manages to Disappoint Investors

Talk about demanding. Tesla reported better-than-expected fourth-quarter earnings on Wednesday, but the Street sent shares down 10% anyway. The announcement of a “Tesla Bot” apparently wasn’t enough to distract from the lack of new car models this year.

Yet perhaps Mr. Musk will have the last laugh. The company has whipped up investor frenzy before with side-hustles like SolarCity, the Hyperloop and Dogecoin tweets. Who isn’t to say that his robot won’t be the next big thing?

4. Reddit Tests NFT Profiles

Not to be outdone by Twitter, Reddit announced this week that it would be testing NFT profile pictures.

“Reactions to CryptoSnoos were decidedly mixed. Many Redditors were angry about Reddit’s expansion into NFTs, which they referred to as ‘idiotic,’ ‘a gimmick” or worse. But some had demonstrated more neutral curiosity or even support for Reddit’s efforts”

— Tech Crunch, Jan. 26

Perhaps LinkedIn will one day do the same. I’ve always wanted a pixelated Ape as my profile picture…

5. Ukraine Uncertainty Sends Energy Prices Soaring

And finally, geopolitical tensions have sent European energy prices on a tear. Even though the U.S. is producing more natural gas than ever before, that gas isn’t reaching those EU countries that are getting cut off by Russia. Liquified natural gas (LNG) terminals aren’t built overnight.

The result: European natural gas prices have risen three times faster than American prices, as measured by the Dutch TTF Gas Index versus U.S. Henry Hub. Perhaps now’s the time to look into some of those U.S. LNG producers?

The Crypto “Winter” that Never Was

Earlier this week, the New York Times published a piece about cryptocurrencies, saying in part, “It’s hard to tell when the crypto bubble will burst, or if there is one”

Riding Waves of Volatility

InvestorPlace CEO Brian Hunt often talks about “Coffee Can Investing,” the concept of putting your stocks in a proverbial “coffee can” to forget about them. If investors can stop obsessing about daily price moves, there’s a better chance they’ll ride out short-term swings.

There’s an underlying logic to this. If I checked the stock market every day, I’d notice that stocks rise on 55% of days, and down the other 45%.

Now, if I had the willpower to check stocks only once a year on Jan. 1, I’d be far happier. Stocks have been up 67% on a yearly basis since 1928. And the longer I go, the better off I’ll feel.

  • Daily. Stocks up 55% of the time
  • Yearly. Stocks up 67% of the time
  • 5 Years. Stocks up 79% of the time
  • 10 Years. Stocks up 86% of the time
  • 25 Years. Stocks up 99% of the time

Of course, not everyone can be a Rip Van Winkle of investing. And those who have the tools to time the markets can add several percentage points to their return.

But for the longer-term investors out there, I encourage you to stay the course on the all-weather picks.

P.S. Do you want to hear more about cryptocurrencies? Penny stocks? Options? Leave me a note at moonshots@investorplace.com or connect with me on LinkedIn and let me know what you’d like to see.

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Thomas Yeung is an expert when it comes to finding fast-paced growth opportunities on Reddit. He recommended Dogecoin before it skyrocketed over 8,000%, Ripple before it flew up more than 480% and Cardano before it soared 460%. Now, in a new report, he’s naming 17 of his favorite Reddit penny stocks. Claim your FREE COPY here!

On the date of publication, Tom Yeung did not have (either directly or indirectly) any positions in the securities mentioned in this article.

Tom Yeung, CFA, is a registered investment advisor on a mission to bring simplicity to the world of investing.

Tom Yeung is a market analyst and portfolio manager of the Omnia Portfolio, the highest-tier subscription at InvestorPlace. He is the former editor of Tom Yeung’s Profit & Protection, a free e-letter about investing to profit in good times and protecting gains during the bad.


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