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November Stock/Crypto Club Quick Review

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November Stock/Crypto Club Review

Here is the intro slide (above) to the most recent stock club meeting that I host monthly, typically the 3rd Saturday. My goal is to give a macroeconomic outlook on the markets, so while it is asset focused, I spend a significant amount of time speaking on the causal nature that the economy & geopolitics plays (or should play) on the values of different assets.

I'll use this post to touch on the bullet points dealing with that "causal nature" in the current economic climate.

  • 4 Factors Creating Volatility, And A 5th

    • Pandemic - COVID 19 has taken its toll on economies worldwide. Shutdowns and restrictions have crushed many businesses in the US, while those correctly positioned, tech especially, are doing record numbers.

    • Trade War - Even though the pandemic has stolen the headlines, the trade war (and currency) between the US and China is still very active. China's stranglehold on tech and production have created massive price fluctuations for US imports, therefore creating volatility.

    • Civil Unrest - Protests, surges in mental illness, and an abrupt change to the everyday way of life of most individuals has created uncertainty and a big shift in spending habits.

    • Election - Many analysts and spectators, me included, thought the election would lead to some downward volatility in the stock market based on fundamentals but we've seen the S&P 500 and the DOW near all-time highs since the election concluded. Tech subsectors like AI, Fintech, Biotech, and Clean Energy have been fueling overall market performance.

    • The 4th Industrial Revolution - In my opinion, the 4th Industrial Revolution is the grand underpinning of what we're seeing in the global economy. If you think about it, the pandemic and the civil unrest factors are actually speeding up its implementation. To sum up the 4th Industrial Revolution (also termed "The Great Reset" by the World Economic Forum), it is the digitization of everything, an increase in public rights (mob rule) and a reduction in private rights, and the automation of most traditional "worker bee" jobs. Now, this isn't the wording used by the WEF, but this is what I took from it.

  • Stock Values Not Matching Fundamentals
    The surges in price we have seen in the stock market aren't matching what we're seeing in the economy or in the book values of most of the stocks that are performing well. Paper printing and debt creation is the likely culprit.

  • Most Major Asset Classes Appreciating Against The Dollar, And Other Fiat The crypto space knows fiat around the world is going kaput lol. All you have to do is look at how almost all major asset classes are performing against the dollar. My last LEO post touched on this specifically.

  • Cannabis Sector Update Pro legislation has set fire to the cannabis sector. In the US 5 states legalized cannabis and the whole country of Mexico is set to legalize before years end. Check out my post on a few opportunities on the board if Mexico legalizes .

  • Bitcoin/Ethereum & CBDCs Blockchain is changing the global financial landscape and slowly taking away market share from other asset classes. Central banks are creating their own digital currencies to get in on the party (and speed up the elimination of cash).

Posted Using LeoFinance Beta