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Cornerstone Crumbs: Wallstreet Message To Retail Investors - Get Out!

"The Lord bless you and keep you;

The Lord make His face shine upon you,

And be gracious to you;

The Lord lift up His countenance upon you,

And give you peace."


Numbers 6: 24-26


The message in 2021 from Wallstreet has been clear - buy-the-dip is going to be punished severely and this will be exponentially delivered selectively across aggressive growth stocks. In other words, any stocks that retail investors target will be hammered the hardest. This isn't simply about meme or yolo stocks, this is much more broad across all retail investors.


For someone like me who doesn't trade, but is actively monitoring the markets daily, you tend to notice how things ebb and flow. I cannot remember a year where volatility to the downside has been as extreme as 2021, without entering or being within a recession.


The irony is that broader indices are doing very well. There is a major disconnect with performance on many instances as I've attempted to highlight illustratively on a consistent basis. The FUD is saying that aggressive growth stocks are facing two major issues. One being overvaluation, and two being rising inflation. These are both true for many aggressive growth stocks, but entirely also fabricated when it comes to select aggressive growth stock leaders.


It was announced today that the U.S. Dept. of Justice, DOJ, is going to begin a criminal probe into short selling by hedge funds and research firms looking at improperly coordinated trades and insider trading. This fact alone is justification for the illegal activity that has been occurring rampantly throughout the year. Of course it won't lead to any changes, but it is a strong confirmation. They key impact it will have is to let the investing community know that the past 12-15 months of trading activity may be coming to an end. This is due solely to the public nature of this being disseminated. Investors must remember that tides shift not from consequence, but from information, working hand-in-hand with greed.


I'll highlight one last example using Roku, Inc. (ROKU) for both YTD and weekly volatility highlights.


Looking to Roku's YTD chart, there have clearly been multiple significant volatility peaks and lows, that has inevitably translated into an accelerated low-point towards the end of the year. On a daily basis, this week witnessed a pop as a deal was finalized between Roku and Alphabet, Inc.'s (GOOG) YouTube. However, the stock is already down nearly 15% from the Wednesday peak. Nearly all stocks in the portfolio are witnessing similar trends as traders suppress any opportunity for improving performance in-line with broader indices.


Roku is a great example because the SP is trading in a discounted fashion with Netflix, Inc. (NFLX), which is not a one-to-one peer, but from a pure streaming perspective the closest peer. As I've written many times before, Roku's fundamental prospects are superior to Netflix, so the discount is highly irrational.


Upon review of the portfolio holdings, there are many similar disconnects, notably with Big Tech. It is no surprise that Wallstreet is supporting Big Tech and punishing Future Tech. Future Tech is a dangerous competitor for Big Tech, and the current U.S. Administration is not interested in future generations when it comes to economy. Rising economic wealth is a threat to political stability (control), and there is definitely a coordinated attack on anything decentralized and innovative today. This is why the DOJ "investigation" has nothing to do with achieving anything.


The good news is that Wallstreet, Big Government, Big Tech cannot control things over the mid- and long-term. The great news is that we live in America, a country that is led and governed by the people, for the people. If a centralized entity attempts to force us to do anything that contradicts what this country was founded on (including God), we have no obligation to abide by it.


There is a generational element here as well. Those in power today are getting older, and they are realizing that their time is coming to an end. Instead of fostering policies and actions for the future, they are greedily restricting and suppressing everything for themselves. This is why there are strong correlations across Big Everything - Big Government, Big Tech, Big Pharma, Big Corporations, etc., etc. Power and greed has corrupted the leaders of America, but this too shall pass.


The future of the nation is not the Baby Boom generation, nor Generation X, but the next two generations below. Whether the Baby Boom generation will even admit it, Generation Y will become the wealthiest generation sooner than later (it's just taking longer as they get serious later in life).


Regardless, investors willing to take risk and go through the difficulties of years like 2021 are going to reap the rewards over time versus those who stick with the status quo. Wallstreet's message for retail investors is clear, get out. But over time a wide variety of investors will be capable of successfully achieving substantial investment returns. The name of the game, as always, is picking winners, something that Wallstreet will always refuse to do.


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