Nvidia IS NOT the stock market

Before we get into this week’s newsletter, I wanna let you know that you can join Fink Premium for life for the pretty cheap price of £299… WITH Discord Access.

This will let you in on the investment ideas generated so far, and going forward…

Which currently look like this…

Now, do bear in mind the SP500 has done only 10.62% over the same time period (from Feb 3rd) 👀

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Nvidia is NOT the stock market…

Clearly.

Yeah, there was a lot of concentration amongst Nvidia.

But the market tends to balance itself out nice and quickly.

As the meme above shows, it’s down about 10% this week, but the NASDAQ is only down, what 0.76%?

Do you remember the video I asked you to watch yesterday?

Well, it’s likely some of this relative value trading is what is keeping the market still relatively buoyant.

Nvidia might be down, but underperformers have probably been bid back up, making the balance a lot prettier for the index.

Which chart caught my eye?

Last week was… insane for stocks.

Even if the market doesn’t really show it now.

The largest one day volatility adjusted rallies occurred across the below 4 tech stocks last week.

And people are still worried about a bear market?

Madness.

What’s key going forward?

Understand this.

The market only wants to break if something big happens.

Life is short, stay long.

There is no point in betting on that one big thing to happen because 99/100, it doesn’t happen and all you’re doing is missing out on the broader move up.

IF from here we see that US data starts to seriously deteriorate relative to what the market has priced volatility of equities at RIGHT NOW, then sure we must get defensive.

But even then, how long might that last with the market in the knowledge the Fed is probably going to similarly get defensive and put a support in?

Always something to ponder.