He's probably referring to https://www.fool.com/investing/2024/02/23/warren-buffett-doesnt-own-bitcoin-but-his-company/
New email from the same person. I've been repeatedly writing about the elevated risks arising in the equity markets, due to stratospheric valuations, and the most expensive stocks having massively concentrated weightings in the indices. Over the last week, we've seen those risks on display as small cap, value, and real estate stocks have been on absolute tear, while the Tech stocks are getting hit hard. This is what's called factor rotation and while it has only been a week, I do believe it gives us a likely preview of what we would see in the next bear market. For instance, today, the Nasdaq 100 had its worst day since 2022, down 2.77%, and the Magnificent 7 were down by 3.4%. The weakness of the heavyweights caused the S&P 500 to be down by 1.4%, despite many stocks being up, largely due to the fact that Microsoft and Apple each count as about 7% of the index and they were down by quite a bit. TTCM portfolios were up, which is why I keep harping that I think we are very well prepared for the likely volatility that is coming. Financial stocks and real estate stocks have been performing very well, with the banks posting fantastic earnings results. Real estate is rallying on the prospects of potential rate hike, as most of the selloff over the last few years has been due to the detrimental impact higher interest rates had on property valuations. Stocks such as VICI, Crown Castle, W.P. Carey, Agree Realty, Camden Properties, and MId-America are fantastic companies with strong long-term growth prospects. None of them have any material Office exposure, which is by far the most troubled area of the real estate market. Most of these companies will likely maintain and grow their dividends over the next 5-10 years, providing a stable and growing income stream for us as investors. Over the last 5 days, small-cap stocks have had the biggest outperformance relative to large-cap stocks in history, since data was began being collected in 1978. This powerful rally is just a bit of mean reversion, as the opposite phenomenon had been occurring right up until then. This trend reversal might prove to be fleeting, or it might be the start of a major change. For those of you that remember the 2000 crash, even though the Nasdaq dropped 80% peak to trough, many value investors made fortunes because value stocks were so cheap going into that bear market. The mean reversion was powerful and lasted around 7 years. Hopefully we see a similar dynamic occur for value, but regardless I believe that we are well prepared. As always, we will keep you updated with however markets unfold from here.
Hussman is a permabear. I've been reading his stuff for years and he has been wrong almost every time. There was a huge rotation in the Nov 2023 to Jan 2024 rally as well. What happened to the IWM since then? It went nowhere fast. The same will happen this time. After another 10% IWM outperformance to the QQQ, IWM will collapse as it always does. And the QQQ will go up another 20%. From the end of Oct 2023 to the end of Dec 2023 IWM was up 25% & the QQQ was up 13%. Since then IWM was unchanged up until the recent run up & the QQQ was up 20%.
The AI bubble is a deep state conspiracy to make trump look bad. the secret service is using the fed’s balance sheet along with funds from China and from other globalists to bid up AI stocks to make Joe Biden look like a good president. If trump wins in November they will then sell all their holdings and short to make the market crash and make it look like trump’s fault. I have friends at coteau and tiger global who are part of the conspiracy.