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This is a quick update with fresh and interesting developments regarding the stock market and our research "Value Investor's Stock Club" that offers the perfect bundle.
Lansdowne Partners Bites The Dust
Breaking news. It was out last week. The famous Lansdowne Partners fund calls it quits. The $2.8 billion Lansdowne Developed Markets fund has been one of the most active shorters over the last years but it has been struggling to make money lately in the stimulus-soaked stock markets. The unlimited quantitative easing has kept many poor quality companies afloat providing them with a lifeline, so this famous short-seller has failed to make money. As shown here and here, this hedge fund lost money both in Q1 2020 and in the first half of 2020, although it has an army of analysts.
For comparative purposes, from December 2015 (when we launched our research) until today, we have 100% success with our short ideas while recording triple-digit returns, as shown in detail in our quarterly performance reviews.
Our latest successful bearish call was on Luckin Coffee (LK). Thanks to our decades-long investing experience, we smelled the fraud, we advised our subscribers to short LK and they made 1,000%.
Additionally, according to Financial Times, the Developed Markets Long-Only fund, which Lansdowne Partners is now focusing on, has lagged behind the MSCI World index since its launch in 2012.
For comparative purposes, we have locked in profits from more than 70 stocks making more than 60% return per pick (average) since December 2015, when we launched our research.
Our latest successful bullish calls were on InMode (INMD) from the healthcare sector, American Shared Hospital Services (AMS) from the healthcare sector, Crown Crafts (CRWS) from the Consumer Discretionary sector and Dynacor Gold Mines (DNG.T) from the Gold sector.
Bank Of America's Research And The Tech Rally
Billionaire investor Stanley Druckenmiller recently said that he has been humbled by the stock market. The persistent rally has been driven primarily by the tech sector. But the indexes have moved too far too fast.
Therefore, the tech rally has stalled over the last days with FB, MSFT, AMZN, NFLX, ZM and many other tech stocks being in correction mode while the quarterly reports are out. A reality check? Absolutely.
According to BofA’s latest research, 74% of respondents said that being long U.S. tech stocks is the “most crowded” trade in the market right now, a record high for any trade in the survey’s history.
BofA's report also shows that a net 42% of investors are overweight technology stocks, the highest of any sector, as illustrated below:
We don't avoid the technology sector.
We have recommended several technology stocks with excellent results since December 2015, when we launched our research "Value Investor's Stock Club".
But we have always been cautious and picky. And we will continue to be cautious and picky.
David Portnoy And The Dumb Money
David Portnoy has posted daily videos about his profits from the rally to his 1.5 million Twitter followers while also claiming victory over Warren Buffett saying:
The people on the internet are debating who is the better investor right now, myself or Warren Buffett? It’s no debate. I killed him. He’s dead.”
I'm sure Warren Buffett is a great guy but when it comes to stocks he's washed up. I'm the captain now".
Therefore, millennials working from home may be moving the market.
On that front, Schwab said in an email to CNN Business that more than half of its new clients since the start of 2019 are households under the age of 40, and that these younger customers are investing "at higher asset levels than normal, so they appear to be very engaged."
Schwab also noted that interest is much higher now than it was after stocks tanked in the midst of the Great Recession and global financial crisis 12 years ago.
Sleep Peacefully With The Perfect Bundle
Sleep peacefully. This is what we always have in mind when we select stocks for our own portfolio and our subscribers.
Therefore, we never buy highly leveraged or overvalued or overhyped stocks, so we never fall victims of unjustified state of euphoria and greed.
We have created a well-diversified portfolio with quality value picks, quality high-yield dividend stocks that pay safe and rich dividends along with select short ideas from different sectors.
On top of this, we actively manage our portfolio by posting Take-Profit recommendations for our subscribers. Passive management is dead because we have entered an era of high volatility and high volatility will be dominant in the foreseeable future.
This is how we have beaten the market since December 2015!
This is why we have so many 5-star ratings and outstanding reviews here!
The 2-week free trial for our research "Value Investor's Stock Club" is waiting for you!
Take also advantage of the existing price at just $299 per year!
Disclaimer: The opinions expressed here are solely my opinion and should not be construed in any way, shape, or form as a formal investment recommendation. Value Digger does not accept any liability for any loss or damage whatsoever caused in reliance upon such information. Investors are advised that the material contained herein should be used solely for informational purposes. Investors are reminded that before making any securities and/or derivatives transaction, you should perform your own due diligence. Investors should also consider consulting with their broker and/or a financial adviser before making any investment decisions.
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