I sold it all today
Summary
Jeremy provides a comprehensive analysis of the current market downturn, noting that the Nasdaq has officially entered correction territory, dropping more than 10% from its recent all-time highs. He explains that investors have lost faith in four primary market pillars: the Federal Reserve, political catalysts, the Magnificent 7, and general economic resilience. He points out that the Fed is no longer expected to cut rates soon and may even consider hikes due to rising commodity prices and oil inflation. Furthermore, the 'Trump optimism' has faded as recent moves regarding tariffs and international tensions are viewed as short-term headwinds for corporate profits and consumer sentiment.
Jeremy focuses heavily on the 'Mag 7' stocks, arguing that massive Capital Expenditure (CapEx) on AI will lead to high depreciation costs, potentially damaging earnings per share growth for years. He notes that the market is currently favoring companies with disciplined spending over those 'spending like drunken sailors.' He maintains a long-term bullish outlook, asserting that markets bottom on bad news and that the best wealth is built during crashes and corrections. He encourages his audience to maintain a high income-to-expense ratio to continue purchasing assets at discounted prices.
Mentioned Stocks
Reasoning: Although the stock was down 8% today, Jeremy highlights his massive long-term gains in the position and emphasizes his 'buy the dip' philosophy for great companies during market drama.
Reasoning: Jeremy states that Microsoft looks like a buy today because it has fallen roughly 33% from its all-time highs. He believes the long-term prospects remain strong despite current Wall Street pessimism regarding AI CapEx spending.
Reasoning: Jeremy views Apple as the standout winner among big tech because they are not overspending on CapEx. This allows them to maintain share buybacks and dividends, leading to much better price stability (down only 2%) compared to the rest of the Mag 7.
Reasoning: Jeremy sold 100% of his TSLZ position today, securing a $7,000 profit. His exit strategy was triggered specifically by the Nasdaq falling 10% from its all-time highs, at which point he decided to close the hedge.