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Ignoring Seasonal Trends

October 27, 2024

The best 3 month period of the year begins this week.

We know this.

But to me, the bigger question is how stocks did during what is historically the worst time of the year?

Remember how September and October are supposed to be terrible for stocks?

Well they weren't.

In fact, stocks rallied during September and October. All the major U.S. indexes were up.

Now we enter the Best 3 months: November - January. 

Here's what that looks like:

 

So if stocks couldn't go down in price during the worst period of the year, how do you think stocks will do when they're actually supposed to go up?

Zooming out, here are the returns of the major indexes during "The Worst 6 Months" of the year.

All of them were up double digits, when historically they were supposed to fall...

 

For me, we don't like to position ourselves according to seasonal tendencies.

The real value, in my experience, is looking back after the fact to see if the market acknowledged or ignored seasonal trends.

When the market is resilient during the bad times, historically that bodes very well for the upcoming...

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Lightbulbs, Bubbles and The Man Who Wanted to Kill Me

October 24, 2024

In 2015 I was an entrepreneur, had my last knee surgery, and was still riding professionally from time to time—until my body finally gave out. 

I was also on the verge of starting my own fund while working for another one. 

In other words, I was busy.

My trading signals back then were based on 10-month highs which reflects how busy I was. 

We saw a new 10-month high by the end of the year, and that marked the beginning of one of the most legendary trends in financial history. 

 

When I first bought in, the backlash was intense. You were an “idiot” for investing in Bitcoin at that time. 

Then, the tide turned and Bitcoin skyrocketed from $300 to $20,000 in the following two years. 

Some mornings, I’d wake up in disbelief that some cryptocurrencies had doubled overnight. 

...

Stocks, Business and Meme Tokens

October 24, 2024

I just got done with 2 days at Stocktoberfest in Coronado, CA - right across the bridge from downtown San Diego.

Every time I'm back there I think about all fun times we've had in Coronado over the years and all the stories from the past.

It's important to remember how we got here if we have any chance of moving forward and building on top of everything that we already have today.

This community is special. Our predecessors didn't have any of this.

The fact that I can fly out there with my friends, to one of the most beautiful places on the planet, talk markets, rates, business and meme tokens is an absolute joke.

It's not even fair. 

So it's up to us to take advantage. 

I did.

I got talk retail stocks with Jeff Macke.

Pearlman and I discussed the health benefits of avocados.

We debated market breadth and sector rotation with new people I had never met before. 

Nicky Montana showed me a really cool new tool to make it easier to trade crypto, for people who are not interested in the blockchain and only want to trade these things in a much faster and simpler way. (I think that's a lot of people...