$1 Club, page-15603

https://www.frbatlanta.org/news/feature/2019/01/30-fomc-press-conference

Keep an eye on the Fed press conference. I believe this will be what will lead the market higher or lower depending on the outcome.

In my opinion this is exactly what we saw happen when the pandemic started. There was a big sell down of pretty much everything as money was moved around. It eventually settled and some companies posted record profits which caused some run away share price movement (APT I'm looking at you). This time investors are looking to rotate their money out of those big growth names and into the value plays. E.g. we could start seeing some international travel towards the end of the year. Given how beaten up airlines are this would be a value investment, forward looking at strong economic recovery. Then we'll see some diversify into fixed income looking to capitalize on a reflationary trade. There's always going to be money in growth companies however it's just a matter of where those high yields will be and of course keeping that margin of safety.

This will eventually calm down once those big moves have been made. I would ask people reading this to think back to that initial pandemic response on the market and how that sell off played out. It was concerning for a while but it did recover and push higher. This rotation is being done on the premise that the economy will return to strength. With strength comes increasing share prices in the sectors that take advantage of the coming changes. BNPL will still post outstanding results as many have become accustomed to this payment method.

Does this affect IOU? Well short answer is yes but with a caveat which is the CR at 50c puts a quasi-floor under the share price at 45c. If we see a double bottom play out then on a technical level this will likely return to the 60c range. Fundamentals also support a move higher. In the meantime as sector rotation continues the price volatility will remain. In my strong opinion the iPay88 announcement has not been priced in. South East Asian countries have been using digital payments for a long time and the zero interest BNPL offering is really just an extension of digital payments which enables the end-user to enhance their cash flow management.