Weekly Market Update #6
4 min read

Weekly Market Update #6

Weekly Market Update #6

The Weekly Market Update's goal is to give you some insights on the stock market, some visibility on my portfolio, and my decision-making process.

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Markets & portfolio update

Table of weekly and monthly returns of different assets
Past performance and financial indicators (MACD, RSI) of different markets and indexes

Tough week. Most assets are down; gold is no exception. Everyone is warning about the bubble. Investors are nervous and ready to pool out their money on any news.

Last week the "bad news"? Interest rates are rising.

My opinion: We may be in a bubble, but I don't see it burst in the short term. At least not before the end of the pandemic. Keep calm.

Bitcoin is still outperforming the market (by a lot). RSI signals it is overbought. I don't think so. I will hold my position at least until $100k. It has been a great ride so far:

Graph comparing my portfolio versus other famous portfolios
Comparing the growth of my portfolio performance (green line) with other portfolios and indexes.

Should we worry about rising interest rates?

This graph started the panic:

Graph of the 10-Year Treasury Constant Maturity Rate
Source: FRED

After a sharp decline last year, interest rates (for the 10-year treasury) are rising again.

What does it mean? Bonds become more appealing to investors (and are less risky).

What could be the consequence? Investors are pooling out their money from stocks. Combine this with the anxious environment we are in, and it could well be the start of a collapse.

Should we be worried? I think it is too early to know. Rates for the 10-Year treasury are rising but not the 1-Year:

Graph of the 1-Year Treasury Constant Maturity Rate
Source: FRED

I find the latter more reliable as it is less volatile. As long as it stays below 1-2%, I think we are safe :)

Updates on my portfolio

I am still in the process of diversifying my portfolio. I added 11 new positions:

Table listing my new positions
Positions I opened last week

eToro added ARKQ and ARKG. I already talked about ARKK here, which had 100%+ returns in 2020. As their names state, ARKG and ARKQ are specific to the Genomic industry and the Autonomous & Robotic industry. It allows being to indirectly hold companies that are not present on eToro. I am incredibly bullish on future genomic advances (the ARNm covid vaccine is an example of what these new technologies are capable of).

I also invested in many chip manufacturers (such as STM, Microchip, and NXP). Semiconductors are the new oil: the global demand for chips is exploding. We can expect penury in the next month. These companies will likely scale up.

What I am reading

Smarter People Take More Risks | Scott H Young
Knowing more helps you make smarter bets. By turning uncertainty into risk, you’re able to take actions that others can’t.
How Much Should You Bet To Maximize Your Investments, or Your Company’s Odds of Success? by @ttunguz
If I gave you $1000 to invest, and five investment options how would you decide? What if you were the CEO of a startup, and a VC invested $10m, and each of your five VPs had different project ideas?This is the question John Kelly, researcher at Bell Labs, sought to answer.A contemporary of Claude …
Asset Allocation With BitCoin - Investment Cache
To invest in bitcoin through a more conservative approach, we can fit it in the context of a larger portfolio comprising other assets.

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