Tech Stocks Get Slammed
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Good morning investors,
Tech stocks got slammed in yesterdays trading session. The Nasdaq was down -2.51%. Bitcoin followed, down 2.38% along with the S&P 500 which was down 1.42%. Year-to-date, tech stocks are the worst performing sector with the Nasdaq down 2.64%. Investors have begun to rotate out of tech and into value stocks, with the iShares Core S&P U.S. Value Index (IUSV) up 1.49%.
If inflation continues to increase, I expect tech stocks to continue to feel pain. Tech valuations are at nosebleed levels. Earnings multiples are off the charts and most high flying tech stocks have failed to generate any cash flows since their inception. Even the once great “SPAC King” has had quiet the difficult year with his mostly non-revenue, zero free cash flow companies.
Despite the increased volatility in the market, I continue to position my portfolio in the same exact way that I have for the past decade. I own cheap stocks that should generate their current valuation in free cash flow over the next two to four years. I own companies trading for less than their liquidation value. And I am not chasing any hyped up growth sectors.
I am doing what I have done for the past decade and will continue to do it going forward. Buying stocks that no one else wants to own and patiently waiting for the market to revalue their assets.
Where to Invest $100,000 Right Now According to Experts
Today, investors face a dilemma. Inflation is at 7.1%. Volatility is rising. And, the pandemic is still disrupting markets. Finding promising investments is harder than ever.
Recently, Bloomberg asked investment experts where they’d personally invest $100,000 right now. Their response? They overwhelmingly advocated for alternatives including art.
Who am I to argue? So I went ahead and added some art to my portfolio. I don’t mean NFTs either. I invested in six real multimillion-dollar paintings.
This is why I’m bullish on art:
UBS reports that two-thirds of high-net-worth collectors buy art for an expected ROI
Real assets like art appreciate well on average when inflation is high
Blue-chip Art prices outpaced the S&P 500 by 164% from 1995 to 2021
But I didn’t have to buy entire paintings myself. That would’ve cost me tens, or even hundreds of millions.
I used Masterworks.io—the only alternative investing platform that lets you invest in iconic art without needing millions. By securitizing works by artists like Warhol, Banksy, and Picasso, everyone can be a bona fide art investor.
They even raised $110M at over a $1B valuation, so their future looks bright, to say the least.
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