I just got back from a week in Disney with a 4yr old and twin 2yr olds. Wow what a workout!
The experience further reiterated why I'm long $DIS and why I'm going to buy more.
They got some racket going down there in Florida. $12 hot dogs? $15 popcorn? And lines around the corner with people waiting to buy them?
That's some hustle they got. Good for them.
The way I see it, if you can't beat 'em, join 'em right? You can get frustrated by the money suck if you want, or you can be a shareholder and profit right along with them. I chose the latter when I got back from this Disney trip a year ago.
But let me tell you this, the $12 hot dogs and $300 princess dresses are NOT why I'm long the stock.
It's that the republicans hate it. They don't like how "woke" the company has gotten.
And since we know that humans have a hard time separating a company and a stock, there is money to be made here by exploiting those who let their politics and "morals" influence their decision making in public markets.
It reminds me a lot of this Summer when we went long Tesla and long Elon. It was very clear to me at the time that the libs couldn't get past their hatred for Elon Musk, and the stock has absolutely ripped in their faces.
I think this Disney trade is just like that:
Do you think this $200 Billion American Institution is going to complete a massive 10-year top in the middle of a bull market?
Or is this going to NOT be a top, just like it wasn't a secular top back in 2009?
I think the squeeze here is just getting going. And it's not a traditional "short squeeze", like what you'll find in our weekly Freshly Squeezed Scan. That strategy exploits the short sellers who've overstayed their welcome.
The squeeze in Walt Disney, on the other hand, is likely to be sparked by a group of (mostly) republicans who allow their political beliefs to influence their decision making in the market.
That's almost always a terrible idea. So taking advantage of their weakness for our own profit is exactly what we want to do here.
This is one of the best market inefficiencies out there. We've seen it time and time again.
The 130% ripper in Tesla since the summer is just one of those. The libs couldn't get past their rage towards Elon, and it's been one of the best performing stocks in the world. More investor wealth has been created for Tesla shareholders than any other company out there during the back half of 2024.
Thank you Libs for your donations.
Now I believe the righties are about to get the same treatment.
And I want to be clear about something. I'm not judging anyone for taking a moral high ground and trying to do what they think is right. In America, we encourage this kind of free thinking. And I believe you should feel and do whatever makes you happy.
What I am specifically talking about here is recognizing those strong emotions, particularly when politics are involved, and taking full advantage of that arbitrage opportunity being created by those who cannot separate a stock and a company.
Humans lose their minds when politics are involved. And if we don't accept their donations, then what are we even doing here?
As a trader or investor or both, what is our goal?
To make money. Period.
And this is a great way to try and do that, by exploiting humans at their weakest moments.
I believe this is one of those.
Again, I'm not picking on republicans. It's the people who let their politics get in the way of market decisions that we're picking on. In fact, it seems like we pick on the liberals even more often. Read this and you'll understand.
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