Last weeks Momentum Monday was all about ‘Those Darn Fat Nixon Sunday Tweets‘.
I have to say I was pleasantly surprised at how well the markets held up all week. On Friday evening I was preparing a list of ideas and a few additions to my portfolio.
Unfortunately, this weekend the political rhetoric was amped up and the markets will have a lot more to digest.
If you own stocks of companies with a heavy reliance on China (for me it is Apple and Nike), it may be tough sledding.
The silver lining of any market pullback is that we can easily see who the real market leaders are. In the US that continues to be software stocks. In particular, open source software stocks (Mongo DB and Elastic) and enterprise software stocks (Zendesk, Microsoft etc). These software stocks are not affected by the politics because they do not rely on China for parts, people or growth.
Another leadership group are the boring restaurants – including McDonald’s (long), Chipotles and Starbucks. If the market continues to roll over these stocks will not stay immune for long.
Bitcoin (the ultimate open-source software), which may also be the ‘new’ place to hide when ugly geopolitics flare, is now the best performing asset year-to-date. In my very first Lindzanity podcast less than a month ago , Farbood and I explained why we were bullish on Bitcoin when it was under $5,000 (now back above $7,000).
I hope everyone has a great week.
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