Tech IPOs are back!

JC Parets
September 15, 2023

We just saw a $50 Billion Tech IPO successfully issued into public markets.

Remember those?

But before we get into growth stocks, let's just put the overall market into perspective.

It was nice to get away from the screens for a few days, while we were out at Future Proof in California. But not much has changed now that I'm back home.

Here's a shot of us during my panel discussion at the Conference:

That was a ton of fun!

And now here is the S&P500 still stuck in this range.

Sideways for longer remains our best approach here:

And while S&Ps are in a range, different strategies are working in this environment than they were during the early part of 2023.

It's been an income generating environment, rather than a market for targeting growth.

But while S&Ps are indeed in a sideways range, the weight of the evidence suggests to me that the resolution will be higher, not lower.

When we look at some of the intermarket relationships that we historically see rolling over before/during market selloffs, both of these are pushing up against new highs.

Here are high yield credit spreads and Consumer ratios both trending up, not down:

So for me, I think we get an upside resolution in S&Ps ultimately.

But I think it will take more time.

That doesn't change the fact that there are plenty of opportunities underneath the surface.

Here's Uncle Warren hanging out at the New Highs Club:

Meanwhile, yesterday we saw one of the biggest IPOs in a long time.

And it was successful, up almost 20% on the first day, currency valued at around $65 Billion:

Even with the more Value-oriented sectors leading the way with rising interest rates, we continue to see names in the Growth areas doing well too.

It wasn't just this week's huge $ARM IPO.

Here is our latest 2-to-100 Club, which specifically focuses on stocks in the Growth sectors that we think can scale to north of $100B in market cap.

We sorted by relative strength:

Make sure to check out the full 2-to-100 Club and trade ideas inside our latest report.

We have a lot to talk about next Monday during our LIVE Mid-month Conference Call.

Premium Members make sure to register here, if you haven't already!

We'll get going LIVE on Monday September 18th @ 6PM ET.

See you there!

JC

 

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