Rotation from Tech to the Real Economy
I dont think investors anticipated what the end of ZIRP would really bring and the U.S. banking problems are a sign of that. The volatility we see is assets like crypto, VC backed tech companies, and speculative tech plays getting sold in favor of companies that do things like make things (and a profit).
I think Q2 2023 is where we are going to see that rotation pick up speed, so for the financial literacy competition I am:
Long $Tradr 2X Short Innovation Daily ETF (SARK.US)$ as overvalued tech companies continue to get revealed as unprofitable and with blue sky growth projections
Long $Direxion Daily Homebuilders & Supplies Bull 3X Shares (NAIL.US)$ as homebuilding picks up in the face of a nationwide shortage
Long $Direxion Daily 20+ Year Treasury Bull 3X Shares ETF (TMF.US)$ as demand continues for treasuries in a choppy market
Long $SPDR Gold ETF (GLD.US)$ because gold bugs have a narrative right now. I don't agree with them but not going to fight the market.
I'm also watching Tesla as insider trading picks up I think its a short candidate at least for the next couple weeks. Another short candidate is Lincoln Financial because of widening CDS and general weakness in the Insurance industry right now.
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