Magic Markets #219: Trade Wars and Trading

Listen to the show here:

Description:

Full transcript:

 

The Finance Ghost: Welcome to episode 219 of Magic Markets. We come to you in a week where Donald Trump has caused a gigantic amount of volatility in everyone’s portfolios. The rand is on a one-way ticket to hell. It seems the S&P 500 jumps around like a sugar-laden toddler. It’s all a bit chaotic and Moe, you are out there and you swore me to secrecy on this, but I don’t care, you are out there busy doing some day-trading on the market and making some money. All very exciting.

So, welcome to Magic Markets. If you are listening to this for the first time ever, then especially welcome. And if you’re an old listener, thank you for including us in a busy week in the markets. We’ll try and impart hopefully some knowledge but also a little bit of what we’re doing when the markets get like this.

 

Mohammed Nalla: Indeed. Ghost. I mean last week, Liberation Day, April 2nd. I’m glad he didn’t frame it on April 1st. Everyone would have thought it was an April Fool’s joke.

 

The Finance Ghost: Should have been an April Fool’s joke. But it wasn’t. That’s the irony.

 

Mohammed Nalla: Well, the irony is that it was called Liberation Day and I saw a very apt comment out there on social media saying that all that he’s actually served to do is liberate investors from their gains following his tariff announcement! I mean literally, that was it. Someone sent me – I can’t say it on here because this is a clean show, we don’t swear on here – but they sent me this very cool meme of Donald Trump looking very serious and he said “F your portfolio” right?

 

The Finance Ghost: Yeah, there we go. My favorite one was actually J.D. Vance. So, they’ve done that really ugly meme where he’s very overweight with US…

 

Mohammed Nalla: But like have you said thank you yet?

 

The Finance Ghost: That’s it. I don’t know if you ever played Theme Hospital when you were a kid? It was this like Sims game. And one of the illnesses that people came in with was something called bloated head syndrome.

 

Mohammed Nalla: Bloaty head syndrome. I played that. Bloaty head syndrome.

 

The Finance Ghost: Oh, was it bloaty? Sure, you remember it better than me. So anyway, J.D. Vance looks like he has that and as you say, pointing at the – and it’s obviously taken from that crazy meeting they had with Zelensky – and then inevitably they’ve placed him against a backdrop of just all these red stock prices. So yeah, it’s the Internet that keeps delivering the humour and some crazy rumours as well. I saw that that Walter Bloomberg channel on X/Twitter, went and caused a whole lot of market moves based on something going out that I think wasn’t true. I kind of skimmed that headline. It’s chaos out there. It’s an absolute circus. And I suppose this is part of why we love the markets and part of why people hate them.

 

Mohammed Nalla: I skimmed it as well because there’s so much fake news out there. Who even knows whether it’s legit or not. All I know is that I’m watching, you’ve mentioned it, so I’ll talk a little bit about it, right? I’m watching this on a micro basis. I had a strategy that I’d used during COVID of intraday trading, very high frequency type stuff. And so you’re sitting there, you’re watching the candles like literally tick by tick, minute by minute. It’s really intense stuff. And what it did give us is yesterday, the day before as well, last week the market was handing out 100 point moves on the S&P futures where usually it gives out 10 point moves. And that kind of volatility can be very scary. If you’re watching it very closely, you can make or lose a lot of money.

I was just going back to your JD Vance analogy there because it’s so funny. We could talk about being overweight equities. I’m not going to make any jokes about Vance and the bloated face out there. What I will tell you is that it’s just maybe starting off, I don’t even know where to start, but maybe starting off with what these tariffs…

 

The Finance Ghost: Wait, before you start, before you start, I’ll let you talk about tariffs now, but I just have to mention – on the phone yesterday, I have to share with our listeners something that Moe said to me about his intraday trading strategy. And he said to me, you know, Ghost – well, he didn’t say Ghost, he said my name because we know each other – he said: it’s like being a Formula One driver. You’re just chasing those tenths, you’re chasing those basis points. So there we go, everyone, if you ever want to hear Moe talk about himself being much cooler than he really is, he’s equated his day trading strategy to what it’s like to be chasing a few tenths on the racetrack.

He did at least spare me a Top Gun reference and potentially Danger Zone playing in the background. That’s what I imagine – all your screens, it’s very hardcore, in-the-zone trading going on there, where in reality it was probably you and two screens and a hoodie and a few hundred basis points here and there.

 

Mohammed Nalla: I’ve got to wear the aviator shades. Then I’ll be really cool and have that song going in the background.

 

The Finance Ghost: Oh, my gosh, can you imagine? I’ll have to disown you, literally.

 

Mohammed Nalla: You’re getting sidetracked. Let’s talk about the tariffs. Let’s talk about the tariffs. It’s very important. Donald Trump, he went and he tasked his team with going and figuring out what tariffs are being levied against the United States. And then again, lots of Internet memes, but probably some credence behind this, because if you go and ask ChatGPT to do this for you, you’d get the response that came out from the Trump administration, because all they did is they took the US trade deficit with any country out there – and I’ll touch on that shortly – any country out there, and then they divided that by the value of imports from the country, and they equated that to a tariff.

They said: that’s the tariff! And so we’re going to be generous and we’re going to have that, and then we’re going to levy that as reciprocal tariffs. Now, the TL;DR on this is this is not how you calculate tariffs that are out there, because looking at trade deficits will actually wrap up not just tariff barriers, but a whole bunch of structural issues as well. This is not a sophisticated way of going about it. And that’s how they came about it!

I mean, the joke out there is that their tariffs actually even apply to countries that don’t really exist. There’s some uninhabited island nations. I’ve never heard of the Heard and McDonald Islands in the Antarctic, but guess what? They got reciprocal tariffs. And the reason for this is that it’s almost as though they mapped this against internet domains, because you can get internet domains from the Heard and McDonald Islands. They’re like: any country with an internet domain, let’s look at this and we’re going to levy tariffs against you.

What’s absolutely remarkable is before the week started, Trump was on his plane flying back from Mar a Lago, going to start some work, golfing all weekend. And his comment was, I don’t want – with reference to the market going down – I don’t want anything to go down. But sometimes you have to take medicine to fix something. And in fact, he actually went as far as to say that it’s a beautiful thing to behold.

I don’t know if the Trump administration has just gone short the market, but this move now pushes the average US tariff rate above levels that we had seen in 1930. I think it was called the Smoot-Hawley Tariff act of 1930. A lot of economists out there say that this Act was actually one of the key factors that worsened the Great Depression.

I know it’s been a decent week – yesterday wasn’t terrible, today the markets are up again. But I think some of these risks have not actually abated. The question for me is I see this as the world’s biggest poker game. Ghost, I’m going to end off on this point and then let you chime in as well, right? This is the world’s greatest poker game because it’s a question of whose pain threshold is actually lower.

Can the US actually say, yes, we can take 10, 20, 30, whatever, whatever percentage decline in our markets, but we’re going to make this stick? And already you’re starting to see some cracks emerge. You’ve had certain world leaders calling Trump, flying to see Trump, saying, hey, you know what, we’ve actually decreased all our tariffs to zero. Let’s talk, let’s negotiate.

The problem here is that there’s very disparate messaging coming out of the administration that contributed to that story you mentioned on social media, which said that there was going to be a 90-day pause in terms of some of these tariffs that was then refuted by the White House. But certain officials are saying this is not a negotiation. And other officials are saying, call us, we’re happy to negotiate.

How does business – how do business leaders invest for the long term? That capacity building that Trump wants to onshore into the US, that’s not going to come until confidence is restored to the markets, let alone investor sentiment over the shorter term.

 

The Finance Ghost: Absolutely. Look, I’m half-ashamed to tell you that I once read one of Trump’s books on negotiation. This was way back in the day when he was on The Apprentice, and I was this young and impressionable young capitalist, and I thought this was fantastic. I read his book on his negotiating style. And I mean – basically, the TL;DR is if you have the biggest stick on the playground, you just threaten to murder everyone until they beg you to stop, and then you start negotiating from there. That’s essentially what he does.

Trump’s style is only possible when you are holding the biggest stick of everyone on the playground. He’s a bully. That’s the reality of how he does things. Love him or hate him, that is his approach. And he basically uses anchoring bias – I mean, he doesn’t say it like that, but that’s what he does, he uses anchoring bias. I say to you: here’s a potentially really terrible outcome. Now I’ve anchored you there. Now we’re thinking about this potentially terrible outcome. Now you pick up the phone to talk to me from a place of, oh, my gosh, this is the worst possible thing that could happen, let me do what I can to stop it!

And now we’ve started the negotiation all the way over there instead of any kind of reasonable level, and then through a process of what is basically almost a hostage situation more than a negotiation, someone gets brought back down to maybe halfway between what would have been a reasonable start and what is an extreme start. And then Trump claims a famous victory because in truth, he then ended up probably far better along that spectrum or far more along that spectrum towards a favorable outcome than any rational person would have gotten.

So what’s happening now is that world leaders are picking up the phone. Will they get to a point where they find some kind of equilibrium? Well, we certainly hope so. Is there a possible outcome where the likes of China just tell him to get lost entirely? That is a possible outcome, and that would then be a serious shift in the way the world works. There would then be a lot of pain in a lot of places. And I just shake my head and laugh at some of the stuff I’ve seen on social media, like American politicians and people of influence complaining that Europeans don’t buy their cars. What on earth are you going to do with an oversized Chevrolet in the streets of Spain? Do any of these people ever travel anywhere, Moe. Anywhere at all?

 

Mohammed Nalla: I’m laughing so hard because you’re so right, if you speak to most sane Americans – and again, I’ve got some bias here – but most sane Americans, people that invest in markets, that have travelled, that are well educated, they think this is a complete disaster. I could use less polite words than that, so I’m just going to restrain myself.

I think it goes back to your point of Trump using anchoring bias. Anyone who’s gone shopping at the Oriental Plaza in Johannesburg will know very well how this negotiation tactic works. Or if you’ve gone to a market in Turkey, you start off at like 100 lira, but the actual price is probably around 20 lira. It’s that kind of negotiation tactic.

Now, the important point, and you’ve touched on it, but I want to maybe unpack that a little bit, is that it all boils down to what cards you hold. You’re sitting in South Africa. The fact of the matter is South Africa doesn’t hold a lot of cards. This recent tariff announcement is likely going to hit specific sectors in South Africa quite hard. I saw a report saying that it could jeopardise 35,000 jobs in the agricultural sector alone.

Remember, South Africa exports a lot of citrus products to the US, so that’s potentially a flashpoint. But other countries out there maybe have their own big stick. Yes, the US is the biggest, baddest bully on the playground, but maybe there’s a new kid on the block, and that new kid is China.

Canada’s kind of been digging in. We’re holding our own. We’ve got a big energy stick to try and hold over the US. We are one of the largest, if not the largest, trading partner. I think that’s a fairly big stick to wield.

So it depends on what cards you hold. And this is the point I want to make: let’s look at China, because China is arguably, by some measures, PPP-adjusted, the world’s largest economy, or maybe second largest if you don’t adjust for PPP.

What can China actually do? The Chinese have actually doubled down. They’ve come out and they’ve said they’re going to fight this to the end. I think those were the actual words, don’t quote me on it, but I think those were the Chinese words maybe lost in translation, but I’m going to stick with that.

China can use tariff measures. Sure, no problem. They’ve already indicated that they’ve said reciprocal tariffs. If Trump escalates those, they’re going to escalate on their side. That’s really what you would call a trade war. That’s essentially a trade war. But there are also non-tariff measures that China can use.

This could be stuff that they’ve used in the past. Customs delays on any US products coming into China and so forth. They could use licensing and certification hurdles. They could use things like consumer boycotts, also targeted investigations and audits. A lot of US firms are heavily dependent on China. China’s been the growth story for a lot of these stocks. Then it went sideways for a long time, but China is a very important market for US firms.

This is what Trump doesn’t get, is those firms, if you look at tech stocks, for example, 50% or more of their earnings actually come from outside of the US, so this trade war is going to hurt their earnings and it’s going to hurt US taxation revenue. Pay attention to that.

On top of that, they could blacklist US firms. How does this manifest? You’re already starting to see players – and I chuckled when I saw this – but Bill Ackman, he’s famous for those super long tweets that no one uses. In fact, I think “Grok summarise this” is actually just designed for Bill Ackman. You’ve got Bill Ackman and he’s been backtracking, he was seen as an enabler to Trump winning the presidency. Now saying, geez, this tariffs, we’ve got to really rethink it.

You’ve had some recent news flow – I don’t know how much credence you can put on this, of Elon Musk saying, geez, we got to relook at tariffs. I wouldn’t be surprised by that because maybe Elon got a call from some of his executives sitting in China saying the Chinese are maybe threatening to pull Tesla’s access to this market completely.

Then you’ve even got Jamie Dimon, someone who we respect so much, and I hated this cause I saw it in January – Jamie Dimon came out and said, yeah, there are the US tariffs and you’ve just got to deal with it. I think those were his words: “deal with it”. Even Jamie Dimon coming back saying, these tariffs are going to do damage. We’ve got to rethink some of this.

So I think that reorientation, it’s very well and good when someone’s throwing the threats around and you think it’s just the threat. I think Donald Trump can dig in his heels because he’s the President, he can do what he wants and he can actually say, well I’m going to stick with this. So let’s see. Because the market is hinging on that. If there’s a capitulation, a softening, you’re going to see this market rally really, really strongly. Because a lot of the negativity that’s come through, that’s representing these asymmetric risks that I think are helping push up markets, certainly over the last two trading sessions.

 

The Finance Ghost: Yeah, I’m waiting to see how long the Musk-Trump bromance actually lasts because I think it’s already on shaky ground. I never really believed it from the start. It just felt like one guy wants to do sustainable energy and electric cars and the other guy is basically a fossil fuel on legs. I don’t really see how these two have much in common beyond just people being power hungry. And truthfully, that’s honestly what I thought.

So last week we did a show on the consumer conundrum and how these consumer stocks have done in both markets, being South Africa and the US, and kind of said, well, at the moment we weren’t ready to dive in. Obviously this has been a rapidly developing situation in the past week. The markets have done a lot of big moves in a short space of time.

Moe, what have you, apart from a bit of day trading with your aviators on and sending me ridiculous messages about feeling like a Formula One driver, what has your approach in the market been? Have you bought any long-term stuff? Have you just been looking to day-trade a bit? What have you done?

 

Mohammed Nalla: My focus was to try and take advantage of the volatility because if you can get that right, you can really get some supersized returns over a very short period of time. I must stress it’s a non-directional strategy. It doesn’t matter if the markets go up or go down. You’re really looking at not carrying any overnight position. You’re not getting the big, hey, guess what, Japan opened up 15%, circuit breakers triggered – you’re not getting that move. But also, you get to sleep at night.

So that’s what I’ve been doing. On the long portfolio, the investment portfolio, not the trading portfolio, I’m pretty comfortable because if I look at what US markets have sold off by, I’m still up on a year-to-date basis. Touch wood, that’s a great position to be in. I’m not up as much as Warren, but I’m up and I’ve been very defensive. Like I say, utilities have been okay. A lot of the defensive stuff has sold off, but not as aggressively. So like I say, I’m sitting on a lot of dry powder. I am looking to deploy that. I haven’t yet. That’s because I don’t know what the game is. I don’t know if Trump digs in his heels and if we actually see some pretty deep economic results come through.

I want to touch on this point because if you go and have a look at the big banks, Goldman Sachs, JP Morgan, they’ve all ratcheted up their probability of a US recession significantly. Goldman Sachs from 35% to 45%. I think I saw a report on JP Morgan ratcheting that up to 60%. No surprises that Jamie Dimon starting to say, hey, guess what? Tariffs might be a problem.

The fact of the matter is that these tariffs are going to do economic damage. If they do economic damage, there’s going to be pressure on earnings. And if there’s pressure on earnings in a context where US stocks have been trading at very elevated valuations, a lot of the themes that we were positioning on going into this crisis, I’m going to call it a crisis going into this crisis, are still relevant. And those themes are play defensive sectors. Those themes are looking at ex-US stocks. I think despite what Trump does now, even if he backpedals on the tariffs like you say, we’ve moved from a position where everything was okay, to an extreme position and Trump’s going to look for a win here. There are going to be winners and losers and I think globally, certainly as he’s levied these tariffs indiscriminately against allies and non-allies. That’s going to actually orientate a lot of global economies to say how do we become a lot more self-sufficient? How do we get our growth rates going?

I think this was the best thing that could have happened to Europe. I think it’s the best thing that could have happened to Canada because it kicks them out of the stupor that they’ve been in over the last several years to say, hey, how do we supercharge our economies? That’s how I’m playing it. Patient. I haven’t sold anything either. No panic-selling either, simply because I’m comfortable with the defensive positioning. And then when the dust seems to settle, I don’t mind losing the first couple of percent that comes through. It might be a lot because markets have sold off a lot. But I want to see some line of sight before taking much longer term decisions. Ghost, what about you?

 

The Finance Ghost: So I’ll tell you now, but there’s one share price chart that I just have to raise because for whatever reason, it just popped into my head to Google it quickly while you were talking. So Palantir: P/E multiple Moe, currently 439x. So I think we can all agree that’s a lot. Don’t cheat now, year-to-date share price move, what do you think it’s done? In this whole chaos and comedy on a P/E of 439x, what do you reckon has happened to the stock this year?

 

Mohammed Nalla: It doesn’t matter because even if it halved, it’s probably on like 200x, right? 200x P/E.

 

The Finance Ghost: No, no, it’s on 439x now. It’s currently on 439x.

 

Mohammed Nalla: Oh, oh my, that’s even worse, right? I mean, stocks like Palantir, stocks like Tesla have been hard hit because they’re so intrinsically linked to this Trump administration. I wouldn’t be surprised to see this thing down like 30%, 40%, maybe 50%. I don’t know, what’s the number?

 

The Finance Ghost: Hard hit since February, maybe. But no, it’s up. It’s up year-to-date. It’s actually up 10% year-to-date. I think what got hit harder, remember that Palantir caught that kind of initial “Trump won” rally that Tesla also caught. I’m looking at Tesla now. But then Palantir has held onto it. Tesla. Tesla – this is crazy! Tesla down 40% year-to-date, Palantir up 9%!

 

Mohammed Nalla: Wow.

 

The Finance Ghost: I don’t know. I don’t have any explanation. I don’t have an explanation.

 

Mohammed Nalla: I was guessing it’s similar to Tesla. So that’s wrong.

 

The Finance Ghost: Yeah, And I don’t blame you because they were tracking at the end of last year, they were super highly correlated and that correlation has fallen apart this year.

 

Mohammed Nalla: I’ve pulled up the chart. So now I’m cheating, right? And I think if you look at the peak, if you look at the peak, right? $120 Peak on Palantir in February. So that was the massive rally and then got down to the $60s. Now the $80s. I mean, that’s painful.

Okay, no one’s picking tops and bottoms here. I’ll tell you why, right? Is in the world that you have right now, Palantir is arguably in the defense business, right? And with the kind of fractures that you’re seeing, the geopolitical tensions, China versus US, Palantir is well positioned to pick up on some of those tailwinds. So that’s maybe why it’s held up. Whereas Tesla doesn’t have the defense angle to it.

It’ll be very interesting to go and pull up a chart on some of the other defense contractors. I’ll do that very quickly while we’re actually talking. Let’s look at Lockheed Martin. And Lockheed Martin, similarly, kind of peaked around what, September last year, $600 down to $400. So yeah, Palantir definitely an interesting one there Ghost, because not even the big defense companies have managed to hold on as well as Palantir.

 

The Finance Ghost: Yeah, look, it’s fascinating. I mean there was no reason for it to be well correlated with Tesla last year. That was just – that was just weird. Palantir is a business that I actually really like, although not on a PE of 430x.

 

Mohammed Nalla: I don’t like them. I’m gesturing here. I don’t like them because of – maybe it’s the business they’re in, but like some of the commentary coming out of the management.

 

The Finance Ghost: No, they’re weird.

 

Mohammed Nalla: They’re very weird on a number of, well, two screens, right? One on an ethical screen. I just don’t like the business. And the fact that I would probably look at Lockheed Martin but not Palantir should tell you a lot, right? Palantir would fail for me on that. Maybe not the guns manufacturers. The other screen is that they’re very opaque. It’s still very much a black box. A lot of people don’t really know what they do. That for me is not a good look.

 

The Finance Ghost: AI Moe! they do AI and then they pump the multiple. What else do you need to do? At least they actually do AI, unlike most stocks where the management talks about AI, Palantir actually does AI. But you are right, they are super weird. I agree with you. It’s a serious gamble. You don’t really know what you’re buying. You’re getting some very weird characters behind the scenes. But they do actually seem to make money out of AI, which is more than most can say.

 

Mohammed Nalla: And the bottom line for me, Ghost, is that sometimes you’ve got to be comfortable to just avoid stuff that you don’t understand or don’t have a good feel for. We’ve avoided Tesla through the ups and downs simply because there’s a lot that doesn’t make sense to us. The valuation’s overcooked. All of those things sometimes just steer away – I steer away from anything that’s meme stockish. And for me, Palantir ticked the meme stock base as well. So a number of screens for me mean that I don’t waste any time watching the stock either. It’s interesting if you understand it, if you like it, if you get a good feel for it, go ahead, go and trade it, do what you want to do. But for me, that stock doesn’t even crack it onto a watch list.

 

The Finance Ghost: Yeah, it isn’t – it is an oddity. So I will tell you as we bring this to a close, what I did buy. I did look at this and I said, okay, this looks pretty hotly oversold. There’s an amazing headline earlier, actually, that talked about the S&P 500 being incredibly oversold and overvalued all at the same time, which is I think probably quite true. But that doesn’t mean that all the names in my portfolio have been or are still that overvalued. Some of them have really taken a big knock.

I basically just had a look through and I looked at some of the weightings and I thought, okay, this is a good opportunity to deploy. I had some cash in my US dollar account. You don’t really get rewarded for sitting in cash in dollars. You’re not getting paid anything for that. So it probably makes more sense to be sitting in equities long term.

I basically deployed it into a few names. Accenture, Acushnet, the golf business, they’re going to get hit hard by tariffs, but we’ll see where the tariffs land. Trump likes golf. I have to believe that Acushnet has got a chance. And it’s the Masters this weekend, Moe. So I mean, the gods of golf are aligning here. It’s got to do okay! Some of the other stuff: Meta, Visa, Mastercard, so some of the typical compounders where if you can get them in a little bit cheaper, you know, why not?

I took a bit of a risk on Lululemon. Added to that position, that’s one that worries me around what might happen in China. But at the end of the day, you have to believe that there’s just so much money on the table held by people of such influence. I mean, we are absolute minnows, complete small fry. No one cares. The big dogs are losing a lot of money and you have to believe that they will find some kind of half-rational solution. It’s either that, or basically the world gets plunged into a wild recession. You see the rise of new crazy governments, you see war. I like to think we’re not going to get there.

And if we do get there, the few dollars that I put into the market today will probably not be my single biggest worry in that world. So sometimes I do that – I look at it and say, well, we can either worry about doomsday, in which case this money is not going to matter, or we can be happy to say doomsday probably won’t happen, in which case I’ll be pleased that I bought the dip. But I did wait for it to dip a lot more since last week. There was some serious pain in the market and I bought around the market open today.

We’re recording this on the 8th of April. We’ll see what happens. Will I live to regret it? Probably not, because my holding period is very, very long and if it just keeps dropping, I’ll just buy some more further down and hold those stocks. Those are stocks I want to hold basically forever really. So I’m okay with doing this.

 

Mohammed Nalla: I’m chuckling because you reminded me of something. There was a colleague I used to work with, he’s unfortunately subsequently passed, but he used to always be quite bearish. And I used to say there’s no upside in betting on the end of the world because if you’re right, it’s the end of the world. And if you’re wrong, well, you’re wrong. So that talks to your sentiment, right? If the world ends, the money is not going to have mattered anyway.

I like some of your picks there. You know, Accenture, great quality company, Visa, Mastercard, quality companies. I also love how you and I are very different because you won’t hesitate to pull the trigger and trade on something that’s sentiment related. And your reference to the Masters coming up and Acushnet, you know, that’s quintessentially you. That’s something I wouldn’t look at. So well done.

 

The Finance Ghost: Well, we don’t know that yet. We don’t know that it’s “well done” yet. We, we don’t know. I tell you what, if Rory McIlroy wins this weekend, Acushnet is going to the moon because everyone’s going to be talking about golf. Watch – this is my McIlroy trade.

 

Mohammed Nalla: I say well done in terms of the discipline of sticking to your knitting and your strategy and what makes you, you. Because doing that in times of exceptional volatility like we’re seeing in the market, that’s what deserves the well done, the results that comes afterwards, right? If your strategy works for you then well done on that. For me, like I said, I’m playing it safe. There are lots of quality companies out there. We’ve covered a lot of stuff here on Magic Markets Premium and quite often it’s so frustrating because you look at a stock and you’ll be like this is a great company, but we only see support 20%, 25% lower and around there we’d be buyers.

I would stress to anyone who’s a Magic Markets Premium subscriber, go and dust off some of the names you’ve been watching. Go and look at the technical charts, go and look at the fundamental analysis. Quite often we indicate that this is looking over baked and in a market that’s running hot, sometimes you never get those entry points.

But guess what, you may have just been handed that opportunity over the course of the last few days. That’s what I’m using to actually frame the stocks that I am looking at, that I currently hold and then may likely add to but haven’t done so yet.

Unfortunately, that’s all we have time for this week. Let us know what you thought of the show. Hit us up on social media. It’s @MagicMarketsPod, @FinanceGhost and @MohammedNalla, all on X or go and find us on LinkedIn. Pop us a note on there.

Good luck in the markets. Until next week, same time, same place. Thanks and Cheers.

 

The Finance Ghost: Ciao.

 

This podcast is for informational purposes only and is not financial or investment advice. Please speak to your personal financial advisor.