July 4, 2024
After this July 4th holiday, the dollar will keep getting stronger forever; the stock market will keep setting record highs every week; NVIDIA will rise forever; and everyone on Earth will live happily ever after. Wake up! It's time to wake up.
No, the dollar will not keep getting stronger forever; the stock market will not keep setting records every week; and NVIDIA will not rise forever. Not everyone will live happily ever after. Markets are cyclical. We are on the rise. Sooner or later, we will be on the fall. That fall will be eventually followed by another rise, so on and so forth. The economic up and down cycle will continue on and on.
For how much longer will the U.S. dollar, the U.S. stock market, and NVIDIA will remain as incredibly strong and high as they are today? No one knows. The future has not been created yet. However, you can bet that it will not be forever.
At the Creatix investment desk we are shorting NVIDIA and buying ETFs of foreign currencies. Specifically, yen, euro, british pound, swiss franc, and Australian dollar. Should you do the same? Probably not. We have been losing money on most positions in the last 6 months. We are currently down 8% on the NVIDIA short; and about 1% down on the foreign currency ETFs collectively. The yen is the one down the most (3.5%), and is the one we are investing more heavily on. We'll see what happens.
Although the future has not been created yet, and it is uncertain by nature, it is easy to predict what will happen with most if not all metrics. Here it is. Time will continue moving forward in one direction. All other metrics will either go up, stay the same, or go down. Provided that you have a winning plan for each possible scenario you will never be lost. You may lose, but you will never be lost.
Stay tuned.
www.creatix.one
Comments
Post a Comment