Market Volatility is back: It's time to eye serious emerging opportunities.
(Email note from February 13th, 2022)
Premium Public Content (Youtube)
Hey YT Friends, it's your favorite Investment Strategist Larry Cheung, CFA
I recently published a video on Growth ETFs on Youtube, and while this video is designed for beginners, the video covers more advanced topics that I think experienced investors will most likely appreciate.
Specifically, on the more advanced side, I talk about....
How you can use ETF's top 10 holdings to understand crowded trades in the market
How you can use the ETFs top 10 holdings to understand what might be "under-owned"
Which names in the market are heavily owned by the major growth ETFs
How to understand what goes inside the ETF creator's thought process behind making a Growth ETF
For those of you who enjoy deep-dive content, I also recently published a long-form analysis video on Spotify (Ticker: SPOT).
Inside this video, I cover my extensive thought-process behind industry analysis and company specific frameworks of consideration.
My focus is much more dedicated on my experience following the names in my coverage using fundamental, technical, and macro analysis.
I do not tend to use DCF models in my analysis as I do not personally believe the institutional buy-side uses those models as big decision factors to make their investment decisions for growth-oriented names (which is where I specialize).
Inner Circle Retail Investment Community Updates
I host my Investment Research Service for retail investors on Patreon, and I thank everyone who has decided to join me in this journey. We now have an amazing community of retail investors where 50% are from North America, 30% are from Europe, and 20% are from Asia-Pacific.
My members know that I have a deep commitment to delivering exceptionally high-quality investment research at a globally affordable price point.
Here's what we've been doing lately. We'll start off with things that have gone well and things that have been challenging:
Things that have gone well:
We essentially called the S&P 500 10% correction as a significant buying opportunity (which it has been, up until this point).
We also discussed the way to invest during earnings season (with a heavy preference on AMD/GOOG/LRCX/Tencent/AMAT given their specific positions in their market place)
We also talked about how the 13,500-14,000 Nasdaq region was a major buying opportunity in mid January BEFORE the sell-off and subsequent rebound happened. Of course, there is a now a re-tracement, but that's after the fact with the latest CPI and Russia/Ukraine turmoil.
Resisting calling FB a buyable dip until the 200-220 range (whereas all of Seeking Alpha has screamed about FB being a buy the moment earnings crashed them to $250/share)
All of these opinions and views are expressed in time-stamped materials in my investment community. There is a clear track record to showcase my thought process and strategy over time as well as written tactical updates for new members to understand how I've helped our community navigate markets so far in 2022.
Our members know that I am deeply committed to their capital preservation and finding opportunity for them when risk appetite returns.
Keep in mind, I am a GROWTH investor, and I dedicate more time in my research efforts towards growth names compared to defensive names (although I might do defensive strategies once I believe the S&P 500 will truly peak).
That said, despite my heavy tilt towards growth, I discuss investment strategy in this theme in the most careful way possible to help limit downside risks while keeping upside opportunity available.
Once again, I am a growth investor. I pay the price of volatility in exchange for additional upside.
I'm simply not interested in value stocks that appreciate in the 3-10% range.
Part of the reason I was able to grow my net worth so quickly was because I was invested in growth (no Crypto) for several years where I was fully invested, besides being an entrepreneur.
That said, let me dive into where the market has been unfavorable to a portion of my positioning.
Where we overstayed our welcome:
In my early January research report, I was too bullish on the high-growth theme (specifically Paypal, Spotify, and Adobe). Keep in mind I believe these names have considerable potential, but I no longer think a short-term recovery is in the cards. Long-term these companies will continue to do just fine.
I continue to believe high-quality (not necessarily high multiple) Growth will come back. I also believe PYPL, SPOT, and ADBE will make a comeback, but this theme requires a long-term perspective. I do NOT believe value makes sustained outperformance against growth given an economic slowdown will give growth companies a premium.
Opinionated or not, I stick to my preference of growth over value. I'm not retiring on value stocks. And neither will you.
Energy is being held up due to geopolitical tension and NOT necessarily because global economic growth is that robust.
While value and energy can continue to rise (there are some companies that are interesting), I view chasing energy and oil as a perilous strategy given its price action is influenced by external events and not strong economic growth.
I do think the markets are exceptionally dangerous right now. Let me guide you. Leverage my research. Make better decisions.
The long-term benefit of making one good investment from my research makes the cost of membership essentially free. Add in the education you receive, and you're essentially being paid to be in my community.
Invest in being a better Analyst, and build the life-long skillset of knowing how to play this game far better than 90% of the population.
A Message to Institutional Investors
Financial Advisors, Wealth Managers, and Institutional Investors:
What's on top of your mind these days? Finding more clients? Helping your clients navigate the current market so that you can boost referrals? Probably both.
The economy has structurally changed since the pandemic.
If you don't have a digital strategy to organically find clients who are a good fit, you'll have incredibly high customer acquisition costs given that traditional ads and FB ads are now much more expensive than they were in the past 18 months.
Trust me, you do NOT only want to rely on referrals, word-of-mouth, and just CPA partnerships to source your clients.
You want to have your own established presence and credibility.
You also want to have a strong investment research provider that can help you look good in front of your clients.
When it comes to building an organic presence and having high quality investment research, I can help you with both.
I'm not ready to take on Institutional/Financial Advisors as clients yet. But I will be later this year, and have already built up a waitlist.
If you are interested in growing your financial advisory business by learning organic strategy and helping your clients add alpha to their portfolios, we need to have a discussion.
Schedule a call today to do a meet and greet so that I can understand your goals.
Let's have a coffee on Zoom if you are a Financial Advisor/Wealth Manager/Institutional Investor looking to build a new-age way to connect with awesome clients and expand your business.