Also, the rotation into our value stocks is a cautionary sign for the overall market too (just like the amazing rally in gold/silver/platinum).
While the dumb money is chasing the last part of the tech boom, central banks and institutions are loading up on metals. And institutions are also rotating into value stocks, like the ones we’re in. They’re hunkering down.
Yesterday there was a CNBC interview of the guy that leads Tiger 21. It’s a group of high net worth people (typically $10 million to $1 billion). 800 members that pay $30,000 per year to be a part of it. That group raised cash to historic levels, for them. (I bet the LI subscription looks like a bargain now. ha-ha!)
The smart money knows what’s likely, while the dumb money is stumbling over themselves to buy historic highs and overvalued, high-risk stocks.
You’ll see that their views are very similar to mine. https://www.cnbc.com/video/2020/04/08/tiger-21-chairman-michael-sonnenfeldt-on-how-his-clients-are-navigating-coronavirus-driven-volatility.html
- This reply was modified 1 month, 1 week ago by Sean Hyman.