Entering text into the input field will update the search result below

Wild Market Week As Energy Jumps While Tech Slumps!

Mar. 06, 2021 8:37 PM ET
Yale Bock profile picture
Yale Bock's Blog
Please Note: Blog posts are not selected, edited or screened by Seeking Alpha editors.


  • Bond Yields And Oil Keep Rising.
  • Growth Names Hurt As Value Starts Working.
  • ARK Faces Challenges.
  • Malone's Shares His Thoughts.

“A speculator is a man who observes the future,

and acts before it occurs.”

— Bernard Baruch

While it is impossible to have any idea what will actually happen in the future, it is

probable you can consider what might happen over the next six months, year, two

years, and even ten years. Some events are more capable of being predicted

than others. If you have a student who has achieved ten years in a row of straight

A’s, one could reasonably predict that this particular person will do well

academically next year, or even for the next three years. If you were to make a

prediction on the won loss record of the New England Patriots after losing Tom

Brady as quarterback, well, you might have predicted success because of their

curmudgeonly, but highly accomplished head coach. Maybe it is space travel you

are considering a prediction about, or possibly whether or not marijuana gets

legalized federally. Sports betting becoming legal in a particular state is worth

pondering, along with on line casinos. Flying, self driving, and electric vehicles

are destined to take over the world, but a more worthy prediction might be the

adoption rate, and when might they accelerate here in the United States, or an

even bigger market like India or China? If you really want to get adventuresome,

over what specific time frame? You can literally think of almost any topic and get

into the projection game, and in most cases, it will have some application to the

financial world. In many ways, investing is putting on your fortune telling goggles

and trying to discern how the future plays out. In that light, let’s take a look at

someone who has done a great job of that over the last five years.

In case you are not familiar with Cathie Wood, she is the founder of the most

successful family of exchange traded products over the last five years, a group

called ARK Invest. It specializes in ideas revolving around innovation, and

because of their outstanding results, the fund family now is approaching 50 billion

dollars of assets. Interestingly, the founder spent a great deal of time working with

no salary and funding the business herself to get the funds off the ground. Her list

of winning stocks is long and deep and some of the biggest moonshots are found

in her portfolios- Tesla, Zoom, Pelaton, etc. My own opinion is her style is

completely different from how I approach investing, but I do admire her ability to

look into the future and make bets on concepts revolving around innovation in the

future. It will be interesting to see how her funds hold up in a market which may

become, shall we say, less placid. On that note, let’s take a look at what

transpired in the market this past week.

Early in the week, Fed Chairman Jay Powell pooh poohed any reaction to

inflationary pressures, and investors were unnerved by the thought of inflation.

Bond yields continue to creep higher, and oil also keeps levitating, receiving a

boost from the latest OPEC missive that production levels will remain constrained

for the foreseeable future. Here in Vegas, the casino industry awoke to the news

that the largest gaming company in the world, Las Vegas Sands, sold their

flagship Vegas properties, the Venetian and Palazzo hotels and casinos, along

with the convention center. The assets will be split between the real estate arm of

the MGM (a REIT), and Apollo Asset Management, the large private equity group

which will take control of the operating segment. The purchase price was $6.25

billion, and the Sands focus will now turn to Singapore and Macau, although some

believe Japan and other countries in Asia are prime targets. There are those who

believe the licensing requirements for Sheldon Adelson’s wife would be difficult to

handle in Nevada, and Asia is a better long term bet to improve shareholder

returns. My feeling is Vegas has had a tough go of it over the last year, and

selling at the bottom strikes me as a bit impatient.

I thought I would also share a rare interview with Liberty Media Chairman John

Malone. It is about an hour long, and you get some interesting insights from as

accomplished a businessman and investor as there is anywhere. Of particular

note was his thoughts on the global pandemic and how both political parties

needed to grow up and become adults. What was interesting was that Malone

was clearly very cheery during the interview, but when this topic came up he

turned sober pretty quickly. He also shared his thoughts on the current market

environment and the challenges facing many investors. It might be worth your

time to take a look. Thanks for your time and I hope you enjoy the weekend.

Thank you for reading the blog this week, and if you have any questions

about investing, please email me at information@y-hc.com.

Yale Bock, Y H & C Investments, its clients, and the family of Yale Bock

have positions in the securities mentioned in the blog, Investing in

securities involves risk and the potential loss of ones principal. Past

performance is no guarantee of future results. All investment decisions

should be considered with respect to ones risk tolerance, return

objectives, liquidity needs, tax considerations, and one's overall

financial situation. The fact that Yale Bock has earned the right to use

the CFA designation does not mean Y H & C Investments will outperform broad

market indexes.

Analyst's Disclosure: I am/we are long LBRDA LBRDK QRTEA QRTEP LXSMA LXSMK LILA.

Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

Recommended For You

To ensure this doesn’t happen in the future, please enable Javascript and cookies in your browser.
Is this happening to you frequently? Please report it on our feedback forum.
If you have an ad-blocker enabled you may be blocked from proceeding. Please disable your ad-blocker and refresh.