Market Update: Fed & Earnings, and Bitcoin Mania
The market remains exceptionally strong as investors continue to digest a slew of earnings reports. Yesterday, the Fed concluded its latest meeting and did nothing. The consensus is that the Fed will raise rates one more time this year at its December meeting. Separately, the Bank of England is set to raise rates today for the first time in a decade. So far, interest rates are still “very” low on a historical basis. So even with a few “rake hikes” on average global central banks are still in an “easy money” stance.
6 Million Percent Gain in Seven Years:
Bitcoin mania is sweeping the globe and the price of Bitcoin vaulted above $7,000 earlier today. Here’s my take on bitcoin, for years I thought it was nonsense and dismissed the idea. (Genius, I know). Then, over the summer, I took the time to roll up my sleeves and really dive into and learn the space. Turns out the secret sauce isn’t the coin itself but the blockchain technology that it is built on. It’s basically an open ledger that everyone in the world can use/see. Blockchain is akin to the operating software and Bitcoin (and other tokens) are just apps that run on the blockchain technology. This is really disruptive because it levels the playing field by creating a public ledger that is decentralized. It also democractizes information which is very big. Bitcoin is up over 6 million percent in the last 7 years!
That is a stunning rally. Clearly, getting into bitcoin now is not prudent but there are other new tokens that are coming out that are very interesting. Anyone interested in investing in the space, let me know.
FLS Portfolio:
The FLS portfolio continues acting well. The protective stops were moved up recently and we are waiting for new healthy risk/reward trades to emerge before adding more risk. Here is a snapshot of the portfolio as of Wed’s close:
Positions:
The service owns:
ADBE +58.66%, BABA +90.07%, CAT +27.16%, ISRG +19.27%, NFLX +14.75%, NVDA +23.79%, RMD +10.39%, MNST +3.14%
The service will exit: ADBE @ 147.94, BABA @ 166.67, CAT @ 120.07, ISRG @337.27, NFLX @179.27, NVDA @172.67, RMD @ 77.70, MNST @54.13
Working Orders:
There are no new orders today. We will look to add risk in the near future.
Disclaimer:
This analysis contains information from resources believed to be reliable but are not guaranteed as to accuracy or wholeness as of the date of this publication. Past performance is not necessarily indicative of future results. There is always a risk of loss in trading and investing. Opinions articulated are subject to change without notice. This analysis and any opinions expressed are intended for educational purposes only and should NOT BE interpreted as a call for engagement in any transaction involving the purchase or sale of any security or investment product or service. The risk of loss in investing and or trading can be substantial, and traders/investors should carefully consider the inherent risks of such an investment in light of their financial condition. The author, firm, associates, or the firm’s clients may have a position in any of the investments mentioned and their positions are subject to change without notice. Any reproduction or retransmission of any portion of this report without the express written consent of 50 Park Investments is strictly prohibited.
