Magnet Investing Insights Timeless Wisdom/Timely Ideas - Week of August 12th
By Jordan Kimmel, Expert Contributor for the ProInvestor Insights Newsletter
Timeless Wisdom/Timely Ideas
“Even being right 3 or 4 times out of 10 should yield a person a fortune if he has the sense to cut his losesquickly on the ventures where he has been wrong.” Bernard Baruch
Market Commentary:
Spike in the VIX, carry trade…and now we need to worry about the Yen?
• Just a wild week where everyone was right and wrongfor a minute. I think even the “algos got tired”.
• The number of 52- week lows has shrunk again, avery encouraging sign for the stock market.
• Good ideas are easier to find in weak markets.
• The reason to raise cash in over-bought markets is to re-enter during oversold markets.
• We see algos (not investors) piling into a few select daily winners, while absolutely punishing others beyond what makes any financial sense. The exaggerated price moves in even big cap companies are coming from the “bots trading against bots” reacting (over-reacting) to news.
Economic data and market clues:
A couple of big earnings in retail as Home Depot and Walmart step forward.
Two big inflation data points will also keep the Fed watchers busy while you will hear more calls of “lower the rates already!”.
Selected current holdings:
Magnet®:
Embraer ADR ERJ
Palantir Tech PLTR
CAVA Group CAVA
FACTS:
AllstateALL
Cintas CTAS
RenaissanceRE RNR
For more information, contact us.
Disclaimer
Jordan Kimmel is the Managing Member and Portfolio Manager for The Magnet Fund. Securities discussed may be held in portfolios managed by The Magnet Fund. Members of the staff of Jordan Kimmel’s Magnet Fund may hold positions in some or all the stocks listed and discussed in this publication. Reference to these securities should not be deemed as an understanding of any future position, buying or selling, that may be taken by Magnet. All investments are subject to a risk of loss. Investors should seek their own investment advice and conduct their own investigation into the suitability of investing in any of the companies mentioned. Readers using this information are solely responsible for their own actions and invest at their own risk. MAGNET is a registered trademark.
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