Imagine you have a group of seven really big and popular kids at school. They are all the best at different things, like sports, computers, or making cool things. They are called the Magnificent Seven. But there are also many smaller kids who want to be like them and do well too.
Recently, the smaller kids have been doing much better than the big kids. This is surprising because usually, the big kids are better at everything. But sometimes, things change and the smaller kids get a chance to shine.
One thing that could make the smaller kids do even better is something called bitcoin. Bitcoin is like a digital money that people can use to buy things. It's not controlled by any country or bank, so it can be more valuable and free. Some people think bitcoin is the best thing ever, while others think it's a scam.
The former president, Donald Trump, used to think bitcoin was a scam, but now he thinks it's a good idea and wants to make America have more bitcoin. This could make bitcoin more popular and valuable. But there is a limit to how much bitcoin can grow, and when it reaches that limit, it might not go up anymore.
So, the smaller kids (the smaller companies) have been doing well lately, but they should be careful because things can change. They should also keep an eye on what's happening in a far away place called Israel, where there might be some trouble. And they should be ready to change their minds about bitcoin and the big kids if something unexpected happens.
Read from source...
- The article's main theme is to promote ZYX Allocation Model Portfolio and discourage investing in the Magnificent Seven stocks and bitcoin.
- The article uses a misleading chart that compares IWM (small cap ETF) to the Magnificent Seven stocks, but does not adjust for market capitalization or revenue.
- The article makes irrational arguments, such as claiming that a short squeeze is the reason for IWM's outperformance, ignoring the fact that the short interest in IWM is relatively low and has decreased over time.
- The article shows a bias against the Magnificent Seven stocks, by ignoring their strong earnings growth, innovation, and global presence.
- The article uses emotional language, such as "Magnificent Seven stocks have been beaten by a large margin", "money is flowing out of the Magnificent Seven stocks and into small caps", and "Trump could propose setting up a national strategic bitcoin reserve".
- The article fails to provide any evidence or data to support its claims, and instead relies on anecdotes and opinions.
Neutral
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This article is from an unpaid external contributor. It does not represent Benzinga's reporting and has not been edited for content or accuracy.
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