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How a Retail Investor Army Went to Battle With a $12.5 Billion Hedge Fund — and Won

By: Justice Clark Litle

Jan 26, 2021 | Investing Strategies

Ten or 20 years ago, the small retail investor was supposed to be afraid of hedge funds. To put it another way: In the old market ecosystem, hedge funds were the predators and retail investors were the prey. And the bigger the hedge fund — as measured by billions of dollars in assets under management — the more of a…

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China is Using its Currency to Stockpile Copper and Grains

By: Justice Clark Litle

Jan 25, 2021 | News

In the TradeSmith Decoder model portfolio, we have a large position in a top-tier copper miner that was up more than 190% as of last Friday’s close. For that we say: “Thank you, China.” There are other crucial factors driving the price of copper higher — and grains, too — but China is a big one. China has been using…

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How Jim Simons Built the World’s Greatest Quant Fund

By: Justice Clark Litle

Jan 22, 2021 | Educational

Jim Simons, the legendary mathematician, hedge fund manager, and quant, retired a few weeks ago from board chairman duties for Renaissance Technologies (RenTech), the firm he started with partners more than 40 years ago. He is stepping back at 82 years old. Simons and his firm are best known for their Medallion Fund, which first began trading in 1988. The…

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Implications of the Super-K Recovery

By: Justice Clark Litle

Jan 21, 2021 | Investing Strategies

“It was the best of times, it was the worst of times…” You might remember that line from A Tale of Two Cities by Charles Dickens. We reference it now, in 2021, because never before has the line been more true. As the pandemic raged last spring, a debate raged alongside as to what kind of economic recovery the United…

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Fifty Years of U.S. Dollar Policy — and Preparation for What’s Next

By: Justice Clark Litle

Jan 20, 2021 | Educational

With a daily volume of $6.6 trillion, the foreign exchange market is larger than any government. Given that reality, no U.S. presidential administration has true control over the direction of the dollar. But all of them like to pretend that they do. On Tuesday, incoming Treasury Secretary Janet Yellen gave confirmation testimony to the U.S. Senate. In that testimony, Yellen…

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The SPAC Supernova Will Likely End With a Spectacular Collapse — But Not Yet

By: Justice Clark Litle

Jan 19, 2021 | News

The Special Purpose Acquisition Company, or SPAC for short, had a supernova kind of year in 2020. The after-effects could be felt, in a bullish way, well into 2021, as hundreds of billions of dollars’ worth of SPAC-driven merger and acquisition (M&A) activity waits to be unleashed. In 2020, the total amount of capital flowing into SPAC deals smashed all…

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Guest Editorial: Five Tech Predictions for 2021

By: TradeSmith Research Team

Jan 18, 2021 | Educational

Editor’s Note: The markets and the TradeSmith offices are closed for the Martin Luther King, Jr., holiday, so today we’re sharing a guest editorial from our friend Jeff Brown at The Bleeding Edge that we thought was particularly insightful. We hope you enjoy these predictions for 2021; we’ll be back tomorrow with our own thoughts on the market and the…

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Scenes from an Epic Market Mania: Bull Raids and Meme Stocks

By: Justice Clark Litle

Jan 15, 2021 | EducationalNews

Speculative areas of the market are not just red hot, they are white hot. Initial Public Offerings (IPOs), a barometer of speculative froth, are on fire. In the past few days alone: Petco Health and Wellness (WOOF) jumped more than 63% on their first day of trading. Poshmark (POSH) saw its share price more than double on the first day….

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Why a New Commodity Supercycle Could Now Be Underway

By: Justice Clark Litle

Jan 14, 2021 | EducationalNews

Goldman Sachs thinks a new commodity supercycle could be underway. We think they might be right. If they are in fact right — which is easily possible — base metals like copper, along with other commodity staples widely used in construction, vehicles, and home appliances, could be looking at price gains that stretch out over a decade, or even multiple…

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Bitcoin Will Not Replace the U.S. Dollar (It Will Do Something Better Instead)

By: Justice Clark Litle

Jan 13, 2021 | EducationalNews

As the institutional world starts taking Bitcoin seriously, new questions are emerging. For instance: Will Bitcoin replace the U.S. dollar? Will it push aside major fiat currency competitors? Could Bitcoin usher in a fiat-free world? In our view, the answer is “no” three times over. The destiny of Bitcoin is not to replace or dominate fiat currencies. It is to…

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