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
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?
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:
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:
(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:
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":
First smart contract deployed on @ArweaveTeam
— Kevin Primicerio 👨💻 (@kprimice) February 26, 2021
"Hello World"https://t.co/KUBXMM8nCG pic.twitter.com/T8hDnWt8o4
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
Chris Dixon
Ray Dalio
Morgan Housel
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Disclaimer: The goal is not to sell you anything but to get to know my audience.