Investors are bearish.
Especially American ones with a ton of Growth exposure!
Want to know what a bag holder looks like? I encourage you to take a look at your typical American portfolio with a ton of Technology stocks in it, Consumer Discretionary stocks and virtually no exposure to Commodities and Latin American equities.
Of course sentiment is bad. It should be bad!
But this bad?
More Bearish Financial Advisors than Bullish ones?
That doesn’t happen very often.
But when it does happen, it’s historically been a great time to be putting money to work.
And to be clear, I’m not making fun of growth investors. I think they’ve had a hard enough time already. I’m specifically referring to the fact that sentiment tends to follow the prices of those growth stocks.
And listen, I realize that commodities have come a long way the past couple years. And I’m also very aware that Growth stocks have already been destroyed.
These aren’t new trends. over 70% of the nasdaq is down 20% or more. Almost half the stocks on the nasdaq have been cut in half. The average drawdown on the nasdaq is almost 45%.
But when we zoom out, have we even made any progress?
These are longer term trends, and it doesn’t look like it’s over.
It doesn’t look like it’s even close to being over.
We may even just be getting started.
That’s how I’ve been thinking anyway.
I had a fun chat Thursday over at The Compound & Friends with Josh Brown, Michael Batnick and Dan Nathan.
Give this one a watch. We had a lot of laughs.
One thing I noticed for sure, and I’m not afraid to throw my friends under the bus, is the lack of interest in natural resource stocks.
“Can we see some Tech stocks, JC”….
Booing of Gold charts.
“Boring Oil & Gas names…”
“I just can’t get interested in this stuff, JC….”
Let them poo poo my stocks.
I still love them. I love these guys more than anything, especially Dan Nathan after the order he placed at the restaurant that night.
Oh my god, Dan is my hero!
And of course, always a good time with JB and Batnick.
That was a lot of fun.
But boy were they hating on my natural resources.
I’ll take that as another feather for the hat of the commodity specular bulls…
Watch the full episode: The Compound & Friends March 3, 2021
Let me know what you think!