20% Outperformance in July!

Weekend Reading 3rd of July

It’s fascinating to see what happens when inflation and growth go down together!

 The most widely held US Sector (Technology XLK), is down almost 10%!
Just look at the timing of our exit in the chart below. When the dip is not a dip, you need to get out!

The huge Tech stocks that seemed untouchable tend to underperform when we have slowing growth and inflation!

Amazon's second-quarter earnings report missed revenue expectations. It issued a weak forecast, causing its shares to drop by 10% and wiping out $350 billion in market value—equivalent to Home Depot's entire market cap. We happily avoided these losses.

Right on cue, the commercial and financial media start begging for more rate cuts as they are all overexposed to these tech giants. It happens every single time. They will probably get it right in time to pour gasoline on the inflationary fire that is experiencing a short-term dip providing some relief to the people. We can already see the leading indicators show this will be short-lived.

 There are still plenty of places to make money! History has shown that in the macro dynamic of slowing growth and slowing inflation, Consumer Staples, Utilities, and Gold perform great!

I teach this in the Personal Portfolio Launch Program.

The leading indicators showed growth and inflation would be going down weeks ago. The results speak for themselves.

In the same period, Tech has been down 10%, Utilities are up almost 10%, Consumer Staples 4,2, and Gold 5,3.