Weekly Market Update #7
5 min read

Weekly Market Update #7

Weekly Market Update #7

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 markets and indexes

The markets got even worse than the week before.

It's looking like Game of Thrones Season 3, Episode 9 out there.

What's happening?

Graph comparing the growth of different assets since the beginning of the year
How much money you would have over time if you invested $10k in each asset on January 4th 2021

All the indexes are down, especially tech indexes (i.e., CQQQ and QQQ).

From stocks to bonds and commodities, traders are moving in sync on the belief that the most ambitious vaccination campaign in history is about to supercharge economic growth and unleash price pressures that have long been dormant. — Bloomberg

So investors are dumping bonds, sending yields (which is your return on bonds) higher:

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

Tech companies such as Amazon, Tesla, Microsoft, or Zoom that thrived during the pandemic are becoming less attractive to investors. Value stocks like utilities, which may have less growth potential than a high-flying software company but are also less risky, are gaining more favor.

My portfolio is filled with tech stocks. It took a massive hit:

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

(And I'm not even talking about cryptos, after its all-time high Bitcoin crumbled by 30%)

My opinion: It's in these particular times that we should stay calm and buy the dip. I will carefully select new assets to buy (or increase my position)

Updates on my portfolio

I didn't open any new positions last week. Actually, many of my positions hit my "trailing stop loss" and got closed:

Table listing my new positions
Positions automatically closed by trailing stop-loss last week

Half of them had been open for a long time, so they managed to drive profit. Most of the red ones were opened in February. I will re-open most of them soon (especially the semiconductors companies).

The world is NFT

If you are interested in the crypto-space (and even if you are not), you probably heard about NFTs (non-fungible tokens). What are they?

NFTs are blockchain-based records that uniquely represent pieces of media. The media can be anything digital, including art, videos, music, gifs, games, text, memes, and code. NFTs contain highly trustworthy documentation of their history and origin, and can have code attached to do almost anything programmers dream up (one popular feature is code that ensures that the original creator receives royalties from secondary sales). NFTs are secured by the same technology that enabled Bitcoin to be owned by hundreds of millions of people around the world and represent hundreds of billions of dollars of value. — Chris Dixon

Blockchain and NFT, to me, seem like the beginning of the internet. It is a jungle with no standards (ISO). However, we can't deny that something is happening. Just look at the volumes: NBA Top Shot had $224M in the past 30 days. And Sorare (which just raised $50M) had $8M (source).

I deployed my first smart contract on Arweave with a famous "Hello World":

I am very excited about Arweave because it allows decentralized storage forever. Storing 100MB of data forever costs about $1!

It supports smart contracts (SmartWave) and NFTs. Actually, it is probably the best place to store your NFTs in a decentralized and secure way.

It is backed by top-tier investors such as USV and VersionOne.

What I am reading

NFTs and a Thousand True Fans - Andreessen Horowitz
Non-fungible tokens offer fundamentally better economics for creators by removing rent-seeking, enabling granular pricing, and reducing customer acquisition costs.
Are We In a Stock Market Bubble?
I’ve seen a lot of bubbles in my time and I have studied even more in history, so I know what I mean by a bubble and I systemized it into a “bubble indicator” that I monitor to help give me perspective on each market. We now use it to look at most markets we are in.
When Everyone’s a Genius (A Few Thoughts on Speculation)
The end of a speculative boom can be inevitable but not predictable. Unsustainable things can last a long time. Identifying something that can’t go on forever doesn’t mean that thing can’t keep going for years. Years and years and years. Part of it is emotion. During the Vietnam War Ho Chi Minh said…

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