I’m Cashing Up, In a Massive Fashion
In the past two days, I’ve cashed up, mostly by selling half of my TQQQ and SPXL holdings. These two ETFs are 3x-leveraged to the upside/downside of the NASDAQ 100 and the S&P 500. I have nothing against the broader U.S. markets, but I think that the Big 10, the stocks that are in charge of most of the index’s gains, are going to take a pause in H1 2022 and the major indices might pull back by 10% and even 15%, suggesting the leveraged ETFs could crater by 30% and 45%.
This is similar to the 2016 playbook; concerns about higher rates would give big money a reason to cash up and hold tight, until some of the litmus tests for markets with higher rates blow over.
A second reason that I’m cashing up in a major way is because I found my NO.1 stock for 2022. I want to concentrate a significant portion into it; the valuation of it is entirely ludicrous and I’m going to share my math on it with you.
It’s in a sector that’s resuming a bull market, and we want in before it surges higher and the window of unreal undervaluation closes.
In the month of November 1971, two Israeli fighter jets, McDonnell Douglas Phantom F4s, reported seeing the Mig-25 Foxbat for the first time in real life. These Mig jets were faster and could fly higher than any other plane (still to this day) and were feared by the West, which thought their technology was 10 years into the future.
Their engines were originally used on missiles and because of the heat generated, the body of the plane was made out of nickel-steel alloy, not light carbon materials.
The Soviets were building up to 100 new planes per month! It was madness!
The Cold War was an era for mistrust and espionage, where information was closely-guarded or leaked, according to the needs of the state. In the case of the Mig-25, the lack of reliable information on it was the birthplace of many myths about the plane, and panic levels were at peak capacity.
On September 6th 1976, in North Japan, a Mig-25 performed a crash landing at a sleepy airport, skidding right off the end of the runway and nearly colliding with commercial planes parked on the strip. It was the first time Westerners saw it in person.
Viktor Belenko, the fighter pilot, sought asylum, and the military and aviation experts examining the Mig’s design were shocked by how flawed and clumsy it was.
The radar was primitive, and though it could elevate to record heights, the engine was essentially disposable, literally enough for just 150 flight hours.
Secrecy caused mystery over Mig-25, but really dispelled all fears.
The Federal Reserve always looks mysterious and sophisticated, but when the curtain is pulled, we learn just how normal it is for its governors to be wrong and behind the times.
Once we closely scrutinize it, we know that markets have been rising, not because companies are so amazing, but because the Federal Reserve has artificially made it so that stocks fall far less than in the past.
The emperor has no clothes and Wealth Research Group thinks that wealthy investors will take profits, now that the FED is not there to provide support, but to withdraw it.
Risk-off is the best time for gold!
Governments Have Amassed ungodly Debt Piles and Have Promised Retirees Unreasonable Amounts of Entitlements, Not In Line with Income Tax Collections. The House of Cards Is Set To Be Worse than 2008! Rising Interest Rates Can Topple The Fiat Monetary Structure, Leaving Investors with Less Than Half of Their Equity Intact!
Protect Yourself Now, By Building A Fully-Hedged Financial Fortress!
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