Google Is Dangerously Overextended…

  1. Hedge Funds have been sitting on the sidelines for most of this rally. Though this has started to change over the last few weeks with funds beginning to pile into risk assets. This is telling as they have a history of buying into tops…

  1. JPM published a report recently warning about the dangers of buying into stocks with high growth assumptions embedded into them. Their “20-year analysis shows that: 1) Close to 75% of those companies in the top quintile of consensus Yr+1 EPS Grw expectations missed estimates and underperformed; 2) While >50% of the companies the bottom quintile beat and outperformed!;”

  1. There’s some incredibly extended charts in the growth/tech space. Alphabet (GOOGL) being a prime example. The stock is currently trading over 30% above its 200-day moving average.

  1. In past instances where the stock has traded this wide from its 200-day, its follow-on performance has been dismal.

10.This recent FT article about the pervasive insecurity of millennials around the globe is an important read.

  1. All of our yield indicators started diverging higher from yields last week. Below is copper/gold in red. If we’re about to enter an accelerated Buy Climax then I’d expect to see yields pop a bit here (bonds selloff).

  1. I recently finished reading “Moo’s Law: An Investor’s Guide to the New Agrarian Revolution” written by the talented investor, Jim Mellon. He’s incredibly bullish on the future market for lab-grown meats and makes a compelling case for being so. AQB is not that. They grow and sell real fish, salmon to be exact, but salmon that’s been genetically modified. The company has been working on its tech for years, recently got approval to bring its product to market, and is finally starting to do so.

I’m not pitching this company (still looking into it) but I’m bullish on the entire Ag/food complex in general and intrigued by some of the tech advances that are going on in the space. Brandon and I are looking through a list of names at the moment.

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Disclaimer: All statements are solely opinions and are for educational purposes only.

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