Posted on September 1, 2022 by Scott Shuda
This writer likes to keep things simple. I believe we are in a trading range. We won’t go much higher due to the FED raising rates and our stubborn inflation. We won’t go too low because the economy is doing well and good paying jobs are plentiful.
But Eric Jackson, founder and president of EMJ Capital has been making the bull case for months and it was looking good. He he rethinking his stance?
Appearing on CNBC Wednesday he said, “No, I still stand by the June 16 bottom that I’ve spoken about before. I think what’s interesting is even with the pullback in August, NASDAQ is still up something like 11%. Since the June 16 lows ARKK and the ETF for biotech XBI are up even more, yet a lot of the same bearish sentiment is back that we had in mid June.
“Put call levels are elevated and investor sentiment is really, really sour right now. A lot of hedge funds are not exposed to growth and are much more exposed to value.
“Even though this is turning out to be a negative August, growth has actually outperformed value in August. I think it is for the same reasons that when we get so pessimistic there’s nowhere to go but up – that’s one of the reasons I’m optimistic.
“Another data point I’ll share . . . You go back and look at 1981-82, which was the height of the inflation scare, from May 1981 to August of 1982 the NASDAQ dropped 29% from from peak to trough. The NASDAQ from November 2021 till June 16 dropped 33%! So in about half the time we dropped more than in the throes of the biggest inflation scare of our time.
“Once the dust settled in August of 1982, the NASDAQ rallied 106% over the next 10 months. Will that happen again? I sure hope so.”
*Verde AgriTech (AMHPF) announced that its second production plant has been commissioned and is now ramping up production up to 1.2 million tonnes per year. “Four years ago we were commissioning Verde’s Plant 1, which has since ran continuously in order to meet the growing demand for Verde’s products. It is therefore timely to rev-up our Plant 2 at a moment when Brazilian potash demands peak and our products have established a track record of delivering optimal agricultural results. The combined total capacity of Plants 1 and 2 will establish Verde as Brazil’s largest potash producer.”
*Scott Shuda Feeds up The Lithium Challenge. “Reaching global net zero emissions by 2050 will require expanding the production of energy-relevant metals from 7 million tons per year to 42 million by 2040 — a whopping sixfold increase. In particular, demand for lithium is expected to grow by as much as 40 times over 2020 levels as EV sales in China and the United States take off in the post-2025 period.”
*View this: Florian’s Monthly Elite Call Recording 8-29-22 is up on the Feed. Great job by Florian.
*Bel Fuse (BELFB) has ignored the tech sector’s struggles and hit a 52 week high.
*An amorous couple was caught having sex in the stadium during the Tuesday night Toronto Blue Jays game. A Twitter comment said police escorted them from the building but no charges were laid.
“If you don’t know who you are, [the stock market is an expensive place to find out.” – GEORGE GOODMAN, The Money Game
Good luck to all – Chris
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