The following article, How to Position Your Stock Portfolio for The Rest of 2021, was first published on Flag And Cross.
Originally written by Dutch Masters. Reprinted with permission.
Wondering what to do in your stock portfolio for the rest of 2021? Yes – there’s a lot going on out there and it can be confusing, but Carnivore Trading is in the business of figuring that stuff out for our thousands of subscribers all over the world, from big hedge funds and institutions to the regular guy and everyone in between. Here’s what we see and we’re going to tell you EXACTLY how we’re positioning in our Carnivore Portfolio. ***
We have a three-pronged attack that we’re using for August, and this might be extended into the rest of the year. Our Carnivore Family knows that we kind of look at things on a monthly basis, but some or all of these might play out for the balance of the year.
Number One: The virus narrative which we call Virus Scam 2.0 is going to persist. If this continues, it’s going to be hard for the DOW and S&P 500 stocks to do well as the shutdowns happen again and restrict economic activity in those types of businesses. As a result, we have to go with the mega-cap high growth, high margin stocks that worked for us in 2020. Remember when Zoom and DocuSign and Amazon all took off like rockets after March 18 of 2020 and the other ones that ran with them, like COUP, MDB, TEAM, and NOW all did the same? Well, that’s where we’re going. Those and a few others that only subscribers can see or know about are in that part of the three-pronged attack and our allocation. We think about 60-65% of a portfolio would be good here.
Number Two: Since those S&P 500 and DOW stocks are likely to get whacked again potentially with closures of economies and new restrictions around the world that inhibit business as usual, the hedge is an ETF that goes up 3X whenever the S&P 500 goes down. It’s called an inverse ETF and it’s not for the faint of heart, it’s not something anyone should look at as a large position for themselves in our opinion, but if we’re right, and the DOW and the S&P 500 get hit again as they did a few Mondays ago when the DOW fell -750 points, then this ETF is designed to go up in value – multiplied by a factor of 3, so you don’t need a lot of it to get the juice or exposure you need there. We think about 10% – 20% would be enough here for us. Not a recommendation, just what we’re thinking.
Number Three: Now here’s the real banger, the boomer, the big call. We think as the printing presses keep on printing dollars and all the other currencies around the world and the value of those dollars are getting crushed by inflation and general mistrust, then Bitcoin and digital currency will rise as a safe home for money. But just buying BTC or other digital currency is not what we do – we trade stocks, so we think that there are some very, very interesting things converging in that world that give a few very select stocks in the Bitcoin mining world some wind in their sails that most people have not figured out yet. China’s clampdown on BTC mining and their move to practically destroy several of their publicly traded companies will make money flow to the US markets, and the smart BTC miners are making some moves that take advantage of this confluence of events and increase their profitability in ways most people have not been exposed to. This is new information, this is real, and it is happening. We began buying Bit Digital the week of 7-23 around $7-$* a share in the Carnivore Portfolio and exposed our subscribers to this trade. We have since added a couple of others that subscribers are now aware of. Add to that BTC has corrected and is now stabilized and looks to us like it could make a run to $80,000, then you have massive potential for some of these “second derivatives” of Bitcoin in the stocks that are correlated, to some extent, to it.
Imagine if Carnivore Trading is right about the Virus Scam 2.0, the rise in some of the very same tech stocks that worked in 2020, the fall in the S&P 500 and DOW stocks, and we see Bitcoin and correlated stocks all work this month and into the year-end? Would that make Carnivore a legendary publication? Would that be the thing that takes Carnivore even more viral than it already is? Would that make people cancel their subscriptions to those old, boring, stuffed-shirt, sleepy stock information services and become what our family here shouts about themselves? Carnivores For Life! It could happen.
Happy trading America!
Dutch Masters is the founder of Carnivore Trading, LLC. For more information and a free two-week trial, go to www.CarnivoreTrading.com.
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