The SPAC Supernova Will Likely End With a Spectacular Collapse — But Not Yet
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…
Scenes from an Epic Market Mania: Bull Raids and Meme Stocks
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….
Why a New Commodity Supercycle Could Now Be Underway
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…
Bitcoin Will Not Replace the U.S. Dollar (It Will Do Something Better Instead)
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…
Inflation Expectations are Materializing in the Bond Market
Jan 12, 2021 | EducationalNews
If you want the most elegant case for why inflation is a risk in 2021, it might just be the trajectory of M1 over the course of the past year…
Saudi Arabia Juices the Oil Price
Jan 11, 2021 | News
A little over a month ago, on Dec. 8, 2020, TradeSmith Decoder went long a sizable basket of oil and gas stocks in the model portfolio. Price action was flashing a green light — always a requirement for new positions — and our bullishness was rooted in the beaten-down profile of energy stock valuations; the demand-boosting prospects of a vaccine-powered…
‘Getting Brexit Done’ was a Bullish Deal — for Europe
Jan 08, 2021 | News
Brexit, as you likely know, is shorthand for “British exit,” in reference to the United Kingdom parting ways with the European Union (E.U.) after a 47-year relationship. Brexit was made real through a U.K. referendum vote whose results shocked the world — few expected it would happen — in the summer of 2016. For four long years, in an excruciating…
Political Regime Change in Washington Pours Kerosene on an Inflation Fire
Jan 06, 2021 | News
On Dec. 17, we wrote to you with the following headline: “The Stars are Aligning for Inflation’s Grand Return — and Bitcoin’s Dominance as an Inflation Hedge.” Bitcoin was trading around $23,000 at that time. A few weeks later, it is up more than 52% (pushing $35,000 as we write this note). Perhaps needless to say, the TradeSmith Decoder portfolio…
The Fate of Jack Ma, and Alibaba’s Reversal of Fortune, is a Warning for the U.S. Tech Giants
Jan 05, 2021 | News
Imagine the U.S. government deciding that a visionary entrepreneur like Jeff Bezos or Elon Musk was too rich and too outspoken. Then imagine Bezos or Musk being kidnapped — and completely removed from the public eye — even as the government openly and aggressively put their tech empire under siege. This is apparently happening to Jack Ma, the e-commerce visionary…
Apple is Still Serious About an Apple Car
Dec 23, 2020 | News
Apple still wants to disrupt the electric vehicle (EV) industry, and it could have some form of EV in production as soon as 2024. This comes from a Reuters scoop, as told to Reuters by an inside source. No matter how you slice it, Apple getting into the EV space would be a seriously big deal. Nor would they be…
