Another interesting month in the markets. The Trump factor was real but had little impact on the markets when the attempted “Storm the Capitol” strategy failed. With Biden now entrenched in office and Georgia going blue, it paves the way for the add-on stimulus. However, another unknown has presented itself in the form of the WallStreetBets forum on reddit. While they appear to be targeting hedge funds exclusively, the impacts on the markets, while transitory at best, could cause some wild volatility in February. My guess is the add-on stimulus doesn’t get passed until March which should create excellent buying opportunities in February as long as the long-term bull trend holds and we don’t go completely backwards again on COVID-19. I’d continue to hold onto any of the mines previously posted in the top 5 stock picks, especially if the WallStreetBet guys try to target commodities next. But to survive the fluctuations in February, I’d continue to play it safe for now…
- Cash (Reducing this to $30K as most of readers hopefully took my advice and bought back into any holdings I viewed as risky – I apologize for any tax consequences this strategy may have caused, just overestimated the Trump Factor at the time).
- Real Estate – Interest rates aren’t going anywhere anytime soon
- Marijuana Stocks – Still cheap and after the stimulus, I could see Congress turning their attention to reform of marijuana laws at a federal level
- JPM – Safer than hedge funds right now
High Risk/High Reward – Short term puts on anything these WallStreetBets are pumping like GME
Continue to hold anything I’ve listed in the past 5 months or so, not named QS, JNUG, NUGT or UGL.