A group of people wrote an article about how they made a lot of money by investing in some companies and also protecting their investments with other strategies. They shared this information because they want others to learn from them and maybe do the same thing. The article is saying that their way of investing has been working very well lately, even better than just buying a big bundle of all the stocks in the market. Read from source...
- The title of the article is misleading and clickbaity, as it does not specify what approach or strategy the author is referring to, nor how it has been crushing the market.
- The author uses vague terms like "better entries" and "best ways to hedge", without providing clear definitions, criteria, or examples of how these are achieved or measured.
- The author makes a false comparison between his own portfolios and the SPDR S&P 500 Trust, as he does not account for the risk and return trade-off, nor the different fees and expenses involved in managing his hedged portfolios versus the index fund.
- The author relies on past performance to justify his approach, without acknowledging the possibility of randomness, survivorship bias, or market regime shifts that could explain his outperformance.
- The author does not address any counterarguments or alternative views, nor does he provide any evidence or data to support his claims or assumptions.
Neutral
Summary: The article discusses an approach to trading that has been outperforming the market recently by getting better entries into volatile names and finding the best ways to hedge them. It mentions two examples of hedged portfolios from mid-November and Thanksgiving week last year that more than doubled the performance of the SPDR S&P 500 Trust over the next six months. The article also answers some questions about why this is happening, but does not provide any specific details or strategies.
To help you make better decisions in your trading and investment strategies, I have analyzed the article titled "Why This Approach Has Been Crushing The Market Recently: Getting Better Entries Into Volatile Names And Finding The Best Ways To Hedge Them" by David Pinsen. Based on this analysis, here are my recommendations and risks for each of the stocks mentioned in the article:
- Affirm Holdings (NASDAQ:AFRM): Buy - This stock has been performing well recently due to its strong growth potential in the buy now, pay later (BNPL) market. The company has a unique business model that allows customers to split their purchases into smaller payments without interest or fees. Affirm also partners with popular merchants such as Shopify, Amazon, and Peloton to offer its services. However, there are some risks involved in investing in this stock, such as increased competition from other BNPL providers, regulatory challenges, and potential losses from fraud or defaults. Therefore, you should monitor the market trends and news related to Affirm Holdings and adjust your position accordingly.
- Coinbase Glb (NASDAQ:COIN): Buy - This stock has been benefiting from the rising popularity of cryptocurrencies, especially Bitcoin and Ethereum. Coinbase is one of the leading platforms for trading and storing digital assets, and it has a loyal user base of millions of customers. However, there are also some risks associated with investing in this stock, such as volatility in the crypto market, regulatory uncertainties, and potential security breaches or hacking incidents. Therefore, you should diversify your portfolio by investing in other sectors and assets, and keep an eye on the developments in the cryptocurrency space.