Quick Trade Update

When the market giveth, taketh.

Recent weeks have been challenging in the small-cap sector, affecting a wide range of markets. Even established companies with solid fundamentals, such as Bristol Meyers, have seen a downturn. However, what's noteworthy is the performance of some of the most innovative companies, which, despite possessing significant long-term macroeconomic advantages, have experienced significant declines. In this context, 'macro' refers to trends spanning 3 to 10 years or more.

Presently, there's an unusual level of uncertainty for the upcoming year, with various scenarios like 'no landing', 'soft landing', or 'hard landing' being discussed. Current macroeconomic data points to a considerable slowdown, and I anticipate a shift in focus from inflation concerns to potentially worrying about deflation. However, I'll put the broader macroeconomic analysis aside for now, as we seem to be at the cusp of a particularly intriguing opportunity.

Now on to what is interesting here:

In the Falcon 9 portfolio on Savvytrader, I’ve very materially reduced the largest position there which was Beyond (formerly overstock). It’s probably a terrible time to sell it as it appears to be firming up here, regardless the move was strategic because it’s held up relatively well as compared to others. I’ve rotated the proceeds from that which was up materially into things that have been hurt far more.